Social Responsibility and Managerial Ethics

Only available on StudyMode
  • Download(s) : 134
  • Published : December 16, 2011
Open Document
Text Preview
Introduction Corporate social responsibility(CSR) refers to the managers are not only create profit for shareholders, but also assume the responsibility for employees, consumers and other stakeholders.(Robbins, Bergman, Stagg & Coulter 2008). Corporate social responsibility requires companies to exceed traditional goals of profit-worship and make contribution to public welfare in the working process. Companies spend more time and resources in managing social responsibility to coordinate the benefit between shareholders and other stakeholders. Corporate social responsibility can achieve the sustainable development of society and economic.(Robbins, Bergman, Stagg & Coulter 2008). In this essay, firstly, I will introduce the corporate social responsibility, and then I will explain why companies need to speed expensive time and resources in the CSR, thirdly, I will show the way how to achieve the CSR. Main Body Already it is fiendishly hard to define a corporate social responsibility. There are two main views which are classical and socioeconomic views. In classical view, management has only social responsibility to get the maximise profits. It mean that company’s social responsibility is only satisfied with the shareholders. Here is a case of the Manville Corporation in United States. Fifty years ago, its senior management had found that asbestos which is one of its products caused fatal lung disease. As a matter of policy, management decided to hide the fact from affected employees. Why? Profits! In the mid-1940s, the company replied the lawyer that their policy can save more money. That might be true in the short term, but it surely wrong in the long run. The company was forced to file for bankruptcy in 1982 because of the thousands of lawsuits about asbestos. Until 1988, the company emerged from bankruptcy. But they got huge liabilities. They had to pay US$2.6 billion in cash and bonds. On 1 April 1996, Manville Corporation closed the company permanently and there is a independent trust fund

continue to pay out the liabilities in Manville’s name.(Robbins, Bergman, Stagg & Coulter 2008). In socioeconomic view, management’s social responsibility exceed classical view and include making contribution to society’s welfare.(Robbins, Bergman, Stagg & Coulter 2008). It generally refers to achieve the benefit while base on ethical values, comply with legal requirements, and respect for people, communities, and the environment.(Catalyst Consortium 2002). So, managers need to coordinate the benefit between shareholders and other stakeholders. Toyota Australia installed a 350,000 litre underground stormwater tank in its new corporate headquarter in Melbourne. The huge tank collects stormwater from the roof and used to flushing toilets and irrigating gardens which are surround the buildings.( Robbins, Bergman, Stagg & Coulter 2008). Toyota build water tank can save water for the society and decrease expense in water, this action is subjective. European Commission emphasize that the CSR is an independent behaviour which is decided by the companies, nobody is compulsive, and it concerted the relationship between company and society.( Lefter & MureŞan 2010). Thus, many corporations do not like to increase attention in CSR before they have been censured by the Greenpeace, media and human-rights organisations. For example, in the early 1990s, Nike was boycotted by large group of consumers. Why? Because the New York Times and other media disclose that the labours in its factory in Indonesian were reviled.(Porter & Kramer 2006). In general, Companies supply goods and services, because the market economy system offers incentives if the companies do it. Market economy operates according to Adam Smith’s invisible hand. (Nick, 2008). Companies contribute social interests to get intangible benefit such as goodwill. Corporate social responsibility can be a long-term economic performance. This action achieve the sustainable development of society...
tracking img