The Jack Welch Era at General Electric Essay example

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Jack Welch was the CEO of General Electric (GE) for 20 years from 1981 to 2001. Jack transformed GE, taking a solidly profitable manufacturing company and turning it into an exceptionally profitable conglomerate dominated by service business. As such a big company who was running businesses for decades, GE has a lot of social responsibilities. Corporate social responsibility is the duty of a corporation to create wealth in ways that avoid harm to, protect, or enhance societal assets. I will analysis the social responsibilities of GE from the following aspects. First of all, GE had economic responsibilities to society and GE did well on it. GE paid taxes—5.7 billion in 2000. Taxes can be considered as the major income of government. Only …show more content…

The EPA concluding that dredging the bottom was necessary to remove the dangerous deposits. It would be extremely expensive, and GE was liable for the cost. GE objected. After many years of delay, the EPA finally ordered dredging in 2001. The cost to GE was estimated at $460 million. Although GE paid for their pollution eventually, the damages were already happen. According to General Principles of Social responsibility, corporations have a duty to correct the adverse social impacts they cause. They should try to internalize external costs, or costs of production borne by society. A factory dumping toxic effluent into a stream creates costs such as human and animal disease imposed on innocents, not on the company or its customers. From the example above, we can see that GE did not comply well with the General Principles of Corporate Social Responsibility. The best solution to deal with pollution issue was avoid pollution.
Secondly, GE followed an unscientific argument. GE under Welch illustrates 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. Corporation has duties that do more than their basic economic function in a lawful manner because performance of a firm must benefit society. Take the loss of jobs

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