Essay about Welch Case Study

1466 Words Jan 21st, 2014 6 Pages
Welsh Case

This particular case discusses whether General Electric fulfilled its Corporate Social Responsibility under the leadership of Jack Welsh or if it just met basic obligations. It also displays the evolving idea of social responsibility in a corporation by contrasting the corporation’s actions during Welsh’s leadership and after Welsh retired. It is shown that Welsh had a classical economic view of social responsibility. General Electric followed a traditional business model while Welsh was working and a progressive business model after he retired. He used a cutthroat ranking system based off of social Darwinism in order to sort out the “best” of his employees. Lastly, it displays that norms and principles are always
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Then they change the evaluation system by “loosening the reigns” and making the system less callous. This would prevent any unnecessary pressure from being forced onto employees. This change would improve teamwork and decrease backstabbing. It will also allow for more diversity at the top and would help prevent any once middle range managers from being cut. GE could have evaluated employees and then restructured their hierarchy by placing the more talented managers at the top instead of solely using a “firing” system. Finally, Welsh should have also kept his personal opinions separate from his business world. Though Welsh could have disliked overweight people, he should not have treated overweight people differently in the workplace.

2. Yes, I think that GE under Welsh displays a view of corporate social responsibility that is closer to Friedman’s view. Welsh shared Friedman’s view that spending corporate funds on social projects diverts shareholder’s dollars to programs they may not even favor. Welsh consistently gave back to GE’s shareholders but neglected to create any funds for social projects.
GE under Welsh’s era only focused solely on the first inner circle of responsibilities. The inner circle includes responsibility for efficient execution of the economic function resulting in products, jobs, and economic growth. GE clearly executed this inner circle of responsibility by being extremely profitable, paying

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