The General Principles of Corporate Social Responsibility That Should Be Exercised by the Managers
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…
The other case is GE also failed to show his responsibility to bring the welfare to its retirees. Welch denied the request of the increment of the pensions and the benefits for the retirees, even though the company has so much money, because during that time GE was highly profitable. During Welch time GE hold a reputation among the labor force as the “race to the bottom” company, that offered lowest wages, lowest benefit levels, and has the most intolerant working conditions. It shows that Welch only care about the advantages for the business but not for creating the CSR of the company policies that would be more employees friendly. 7. Corporate behavior must comply with norms in an underlying social contract.
A social contract between organization and company might be something unwritten, but the things that GE should have to realize that there is many written agenda that GE could apply on how the business can play their role ethically to the society beside to create economic goals for company, it was something that GE failed to exercise.
So Generally It can be conclude that GE during Jack Welch era are failed to comply with all the general principles of social responsibilities, it seemed that only one from the seven principles explained above that he able to managed, which is the economic goals for the company only.
Q4. What are the pros and cons of ranking shareholders over employees and other stakeholders? Is it wrong to see employees