Social Responsiblity-Jack Welch

2421 Words Nov 19th, 2008 10 Pages
1. Corporate social responsibility is defined in Chapter 5 as the corporate duty to create wealth by using means that avoid harm to, protect, or enhance societal assets. Did GE in the Welch era fulfill this duty? Could it have been done better? What should it have done? Jack Welch did make GE the most valuable company in the world. He was described as “the most important and influential business leaders of the 20th Century” by some Wall Street analyst. Nevertheless, Jack Welch as the CEO did not fulfill the duty of social responsibility. He did not avoid harm or protect societal assets. Under Welch’s leadership the GE Company contributed to environmental damages in areas of the country which manufactured GE products. One instants is GE …show more content…
Paying taxes is wonderful and all but it is not the only social responsibility that a corporation should have.
Jack Welch should have been proactive in his cleaned up the PCBs in the Hudson River, to help prevent the harm of the fish and the citizens who live near and on this American water source. He should have considered the layoffs and what effect outsourcing had on the US economy. It would have been more socially responsibly to have looked for ways to enhance American work force thru innovative ideas and partnering with other businesses in the world. In his defense, he did fulfill the economic responsibility of paying taxes to help society; he would have done anything in his power to lower the taxes though. He could have done more!

2. Does GE under Welch illustrate a narrower view of corporate social responsibility closer to Friedman’s view that the only social responsibility is to increase profits while obeying the law?
Welch does illustrate a narrow view of the corporate social responsibility closer to Friedman’s view. Jack Welch did believe the only social responsibility is to increase profits while obeying the law. Welch said a “CEO’s primary social responsibility is to assure the financial success of the company.” It is all about hitting the numbers with Jack Welch. He did this by doing anything to lower the cost and he delivered the growth figures that could only be dreamed by lesser companies. He improved the company’s

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