The General Principles of Corporate Social Responsibility That Should Be Exercised by the Managers

879 WordsMay 23, 20134 Pages
Q3. How well did GE conform with the “General Principles of corporate Social Responsibility” set forth in the section of that title in the chapter? Here some of the General Principles of Corporate Social Responsibility that should be exercised by the managers: 1. Corporations are economics institutions run for profit. This are their main responsibility, they are oriented to the financial incentives, and not in the term that have to be able to meet the social objectives without financial incentives. In this case GE in the Jack Welch Era able to meet its primary economic responsibility to the society, as an evidence, GE able to generated high profit, Welch has managed to achieve the main goal for organizations which is profit…show more content…
Some of the case of violations that previously mentioned is the pollution in the Hudson River, the incident somehow proved that GE under Welch era only concerned about the company profits, because at that time Welch denied to perform his duty to correct all the impact that they create to society. Even worse that due to the political power that they had they are able to make the law and regulations written in line with their favor (GE hired 17 lobbyist, including a former, senator to fight an extended political battle against the cleanup of the pollution). Therefore it makes the operations of GE under Welch era has failed to comply with all general principles of Social Responsibility. 5. Social responsibility varies with company characteristics such as size and location. GE has a hundred numbers of businesses whereby during Welch era the center of gravity business strategy is manufacturing base and service base. Thus GE should realized that it has a far different impact on society than other small business organizations. 6. Managers should try to meet legitimate needs of multiple stakeholders. In this case it can be says that GE has failed to meet the needs of multiple stakeholders. One of the ways that Welch took and seemed relentless is the “rank system” for GE managers and employees., Welch didn’t even care even though his strategy was to create a greater performance of employee it is somehow can caused a low morale among the employee, it may create
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