Quiz 5: Corporate Social Responsibility

Business

There are certain social duties entrusted to corporates to generate wealth by employing ways that evade infliction and to preserve or heighten assets of the society. The idea of corporate social responsibility (CSR) sprung only in the 1960s where it emerged in the academic record. The primary reason why corporates are mandated to conduct CSR is that corporates are viewed as entities that could benefit society as a whole, not only existing for achieving economic pursuit. Today, every corporate has kept some percentage of its profit margins for CSR and contributed volunteer or community services. Some companies adopted humane practices and donated more for social well-being, while others adopted ruthless practices. The story of Company GE led by Person W showed how corporates did little for the welfare of society and treated their workers as secondary beings. Company GE, during the tenure of CEO Person W, accomplished its economic responsibilities in the society as it earned massive earnings and paid taxes. In addition to this, shareholders' remuneration, including pensions and mutual funds, were supplemented, whereby several managers became multimillionaires. The Company GE under Person W, fulfilled mainly the primary economic responsibility but did little for social responsibility although it had engaged in broad philanthropy and community activities. It is an apparent responsibility of any big conglomerate to make some donations towards educational institutions and various non-profit groups, which made the company's contribution not exceptional or an extraordinary case. Company GE could have done more by adopting more ethical business practices. Person W was a notorious leader the treated his employees like secondary characters and were pressured to work for prolonged hours, which is a violation of human rights. The company's shareholders and executives were paid a high pension and enjoy extravagant life while his workers struggle to survive with a meager pension. Person Q, who worked for the company for 39 years, was paid only $8,844 a year while Person W pension is $357,128 a month, indicating a stark difference of salary between the workers and the executives. Company GE could have reduced the prolonged working hours and eliminated the vitality curve that incorporated a 20-70-10 system, which pressurized managers to engage in cut and throat competition, and teams at the bottom 10 were laid off. The company could have adopted a strategy where the top-performing team managers should be rewarded while the worst-performing group should be encouraged to perform better. Moreover, the dumping of chemical waste-polychlorinated biphenyls-into the River H and the rejection of the EPA's recommendation that called for dredging the bottom was an act of irresponsibleness since social responsibility also requires corporates to adopt sustainable and conservation of environmental practices. It should have accepted the recommendation and cleansed the river from toxic chemicals, instead of engaging in lobbying to repudiate the EPA's order.

Corporate social responsibility is a duty entrusted to corporates to generate wealth by employing ways that evade infliction and to preserve or heighten assets of the society. The idea of CSR sprung only in the 1960s where it emerged in the academic record. The primary reason why corporates are mandated to conduct CSR is that corporates are viewed as entities that could benefit society as a whole, not only existing for achieving economic pursuit. Today, every corporate has kept some percentage of its profit margins for CSR and contributed volunteer or community services. Some companies adopted humane practices and donated more for social well-being, while others adopted ruthless practices. The story of Company G led by Person W showed how corporates did little for the welfare of society and treated their workers as secondary beings.  Company GE, during the tenure of CEO Person W, accomplished its economic responsibilities in the society as it earned massive earnings and paid taxes. The Company GE even violates federal law by pressurizing its workers to work for prolonged hours and engaged in lobbying to evade from the EPA's recommendation that compelled the company to clean the River H for dumping chemical waste Since Person W was only concerned with profit maximization he adopted a 20-70-10 strategy where the top-performing team managers are rewarded and the bottom was laid off, which induced cut-throat competition between the team managers.  Company G produced a narrower perception of CSR, closer to Person F's understanding that the only social responsibility required is to increase gains and comply with the established law, since it is mainly concerned with accomplishing economic responsibilities and did little for social responsibility. Despite engaging in extensive philanthropy and community activities, the Company GE's contribution is seen as meagre and is widely criticized for its unethical business practices. Additionally, it is an apparent obligation of any big conglomerate to make some donations towards educational institutions and various non-profit groups, which made the Company GE's contribution not exceptional or an extraordinary case.

There are certain duties entrusted to corporates to generate wealth by employing ways that evade infliction and to preserve or heighten assets of the society. The idea of CSR sprung only in the 1960s where it emerged in the academic record. The primary reason why corporates are mandated to conduct CSR is that corporates are viewed as entities that could benefit society as a whole, not only existing for achieving economic pursuit. Today, every corporate has kept some percentage of its profit margins for CSR and contributed volunteer or community services. Some companies adopted humane practices and donated more for social well-being, while others adopted ruthless practices. There are no universal CSR laws to follow, nonetheless, there are broad principles which companies have accepted and came to be widely known as the General Principles (GPs) of CSR. The story of Company GE led CEO Person W showed how corporates did little for the welfare of society and treated their workers as secondary beings. Under the GPs of CSR, corporations are viewed as economic establishments operating for, obey various bodies of law, practice ethically, reprimand the social impacts caused, comply with the standards of a social agreement, accept a degree of responsibility, etc. These are rules broadly accepted by all the companies where they are expected to comply with the established rules. GE, during the tenure of CEO W, accomplished the established principles to some extent as it achieved its economic responsibilities in the society by earning massive profits and paid taxe s. In addition to this, shareholders' remuneration, including pensions and mutual funds, were supplemented, whereby several managers became multimillionaires. Company GE, under Person W, fulfilled mainly the primary economic responsibility but did little for social responsibility although it had engaged in broad philanthropy and community activities. It is an apparent responsibility of any big conglomerate to make some donations towards educational institutions and various non-profit groups, which made the Company GE's contribution not exceptional or an extraordinary case. Company GE could not achieve the duty that called for corporates to take accountability of the social adversity caused by it instead, it engaged in lobbying techniques to repudiate the recommendation set by the Environmental Protection Agency (EPA) for dumping toxic chemical substances in the River H. Company GE refused to take responsibility for cleaning, which was set by the EPA. Also, the managers did not act ethically; they were engaged in tax fraud and forgery, and the CEO W laying off many workers who failed to achieve the target. Therefore, Company GE was not able to fulfill all the above-mentioned duties.