The General Principles of Corporate Social Responsibility That Should Be Exercised by the Managers
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 maximization, it can be seen that GE able to took care their shareholders interest along with its directors and managers became multimillionaires in GE stock, extended to create prosperity for the society and nations by fulfilling its taxes responsibility. 2. All firms must follow multiple bodies of law including (1) corporation laws and chartering provisions, (2) the civil and criminal laws of nations, (3) government regulations, and (4) international law.
In this case GE in the Welch Era has failed to maintain the ethical ways in doing business by some of its industry players, GE have a long list of fines and violations, such as environment violations, consumer fraud, deceptive advertising and many more, one of the case of GE violations is when the Environmental Protection Agency (EPA) found that GE released its PCBs (Polychlorinated biphenyl’s) into the Hudson river, and GE was liable for the cost of cleaning up the pollution. But surprisingly the long list of civil and criminal laws committed GE happened over the years of its operations. 3. Managers must act ethically.
In this point we will say that GE comply the ethical actions for the economic goals purposes only, which already explained in point number one. 4.
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 maximization, it can be seen that GE able to took care their shareholders interest along with its directors and managers became multimillionaires in GE stock, extended to create prosperity for the society and nations by fulfilling its taxes responsibility. 2. All firms must follow multiple bodies of law including (1) corporation laws and chartering provisions, (2) the civil and criminal laws of nations, (3) government regulations, and (4) international law.
In this case GE in the Welch Era has failed to maintain the ethical ways in doing business by some of its industry players, GE have a long list of fines and violations, such as environment violations, consumer fraud, deceptive advertising and many more, one of the case of GE violations is when the Environmental Protection Agency (EPA) found that GE released its PCBs (Polychlorinated biphenyl’s) into the Hudson river, and GE was liable for the cost of cleaning up the pollution. But surprisingly the long list of civil and criminal laws committed GE happened over the years of its operations. 3. Managers must act ethically.
In this point we will say that GE comply the ethical actions for the economic goals purposes only, which already explained in point number one. 4.