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The practice of management by peter f. drucker
Roles of social responsibility in business organization
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Recommended: The practice of management by peter f. drucker
Many companies are starting to realize just how much of an impact their decisions and operations make on society. Intel, an American corporation that designs and manufactures chips for computers and other various types of integrated technology, is at the forefront of the social responsibility movement within the technology business. Intel’s co-founder, Andy Grove, built the company based around the management views of Peter Druckers as written in his book, “The Practice of Management”. This book has an entire chapter dedicated to “The Responsibilities of Management”. Drucker’s book states that businesses and those running them have a responsibility to consider how their actions may affect society. The choices of one organization may affect many parts of the world. According to Drucker, when businesses are making management and operation decisions, they must “consider whether the action is likely to promote the public good, to advance the basic beliefs of our society, to contribute to its stability, strength and harmony”. This means that it is up to the upper management of an organization to make sure that any decisions a company makes coincide with the values of society and will have a positive impact on society (Wartzman, 2014). Intel has taken Drucker’s concept and theories to heart when creating their policies. According to Intel’s Chief Executive, Brian Krzanich, Intel is the first company to make and ship computer chips, or “microprocessors”, that aren’t made from minerals, which profits from go to military leaders in the Democratic Republic of Congo. These military leaders command armies, which murder innocent citizens in their attempts to gain control of the mines and the routes to transport the minerals. By purchasing mi... ... middle of paper ... ...omponents, which are environmental, human rights, community, and employees. While I won’t get into the details of each program because that would be quite lengthy, I will say that knowing that I work for a company that cares for its employees all over the world, the environment, and its consumers and community increases my pride in the company and makes working there an even more enjoyable experience ("Social & Environmental Responsibility Report 2011-2012."). In my opinion, social responsibility programs are important and should be a mandatory part of any organization. All organizations, no matter how small, have to realize how they have an impact on society and the world. Even though these programs may be costly, they may pay off in the long run because consumers won’t want to spend their money at a company that doesn’t concern itself with its impact on society.
The responsibility of any business should be committed to developing and implement best practices into their daily business operations. It is important for businesses to be socially responsible because it protects and improves the lives of their employees and the communities they serve. TechFite’s main benefit from being socially responsible would be brand/reputation differentiation. TechFite decided to invest in a bankrupt city in promising to invest into the city and develop leadership programs would propel TechFite as the knight in shiny armor. Other companies may or may not want to continue to invest in a broken city and if TechFite can deliver its promises to Dellberg, their reputation and brand recognition would be known industry
“The people who are crazy enough to think they can change the world are the ones who do” (Isaacson). When the late Steve Jobs was a child he was abandoned by his real mother and adopted by the Jobs family. Steve was a stubborn rude man who was ruthless, however he was focused, crazy, and inspirational. His characteristics drove him to form one of the greatest companies today, Apple. The computer company revolutionized the world with a frontline of the greatest products the world has ever seen. Although facing many hardships, the company managed to change the music industry, computer industry, phone industry, design industry and created a tablet industry. Apple envisioned products that did not exist and it thrived from the reaction of its consumers. After becoming a fortune five hundred company, it has continued to develop its products and has remained one of Americans most pristine companies however has also been put in the spotlight on social and ethical responsibilities. Ethical businesses use principles and standards that determine if conduct in organizations is acceptable. The big question has arose, is Apple socially and ethically responsible with their suppliers, the economy, its workers, and its consumers? Is Apple responsible for its supplier chains? Does apple have programs through which they help solve social and ethical issues? Has apple made any financial contributions to address issues?
Of the many possible ethical dilemmas that people could face in the business world, the article: “The ‘Do Whatever It Takes’ Attitude Gone Wrong” portrays particular ethical situations in todays business world that are very common: poor social responsibility and its negative effects. Social responsibility is considering what affects business decisions and products have on society. The article reveals what goes on behind the scenes at a business in terms of poor ethical decision making and how often it occurs. It mainly focuses on how business decisions are made without consideration
Whether an organization is domestic or international they have social responsibilities to the communities they operate within and to the shielding of the world. Caterpillar, Inc. is one such company that puts social responsibility at the top of their priorities. They have an abundance of engineers and technologists working on solutions to improve on sustainability. According to the 2012 Sustainability Report (2012), “at Caterpillar, we always ask ourselves, ‘What do our customers need? What does the world need?’ World Resources Institute (WRI) asks those same questions about the communities it serves, and truly delivers some amazing results” (p. 19).
To supply the wants and needs of a consumer, society entrusts wealth-producing resources to the business enterprise.” (Santayana, George. Is The Tyranny Of Shareholder Value Finally Ending? So before we go into greater detail on the different perspectives related to social responsibility, one might question the meaning of social responsibility. It is generally agreed that social responsibility is defined as the business obligation to make decisions that benefit society.... ...
Apple’s maintenance of its image in the global marketplace comes with a price on how ethnically Apple conducts business practices while promoting environmentally safe products for the consumer. Apples’ Code of Conduct, voluntarily executed, exemplifies to the global market, investors, regulators, that Apple’s standards and codes of environmental conduct are universal. To maintain Apples’ universal symbolism, systematic inspections into Apples’ supply chain, conducted regularly, are to expose violations of its work ethics not surpassing apples’ comprehensive standards established for its suppliers.
The corporate social responsibility is a commitment by a business to contribute to economic development while improving the quality of life for employees and their families’ as-well as contributing to the society. Walmart is a well-known company that offers customers the items they want and need at a low cost, with nearly 4,000 stores in the United States. According to the Fortune 500, Walmart was ranked number 1 in 2015. Just like any other superstore Walmart needs to continue the use of social responsibility by recreating a relationship between business and the community especially if they want to dominate the competition in 2016. The use of sustainability, strategic philanthropy, causing market, shared values, stakeholders and global perspective will help readers understand the purpose of social responsibilities in the corporate world.
Covey & Brown (2001) “the role of business in society has progressed over the years, from being primarily concerned with profit for sharehold¬ers to a stakeholder and community approach with a focus on corporate social responsibility”
Green and sustainable companies has made social responsibility an important part of their business models.
Many people believe that they have a social responsibility to take care of their community and the people within that community. The community can expand from local and regional to national and international in scope. Social responsibility in not limited to individuals, but many businesses and organization have joined the call for social responsibility. Corporate Social Responsibility, CSR, is when business and corporations make this a priority in their operations. Two questions come to mind, why a company needs to practice CSR and how can they do it?
In today’s fast paced business world many managers face tough decisions when walking the thin line between what’s legal and what’s socially unacceptable. It is becoming more and more important for organisations to consider many more factors, especially ethically, other than maximising profits in order to be more competitive or even survive in today’s business arena. The first part of this essay will discuss managerial ethics[1] and the relevant concepts and theories that affect ethical decision making, such as the Utilitarian, Individualism, Moral rights approach theories, the social responsibility of organisations to stakeholders and their responses to social demands, with specific reference to a case study presenting an ethical dilemma[2], where Mobil halts product sales to a garage, forcing the garage owner to stop selling solvents to young people. The second section of this essay will focus on advice that should be given to any manager in a similar position to the garage owner with relevance to the organisational strategic management, the corporate objective and the evaluation of corporate social performance by measuring economic, legal, ethical and discretionary responsibilities. It will address whom to think of as stakeholders and why the different aspect could cost more than a manager or an organisation could have imagined.
When the problem became serious two main views formed: the “narrow” view and the “broader” view, based on different ideas. The “narrow” view is based on the proposition that corporations have no social responsibility and they have only one main purpose, to make a profit (Friedman, 1970). So corporations should remain socially independent and all conflicts must be solved through the individual responsibility concept. On the contrary the “broader” view states that corporations have social obligations as all existing participants of market, persons and entities are tied together and are mutually dependent. So corporations cannot ignore some serious events or problems, which take place, and must help society, as profit is not their single purpose.
It seems obvious that large corporations have a tendency to ignore the negative effects of their actions in favor of profit. This example, although sensationalized, still says to me that with power comes responsibility. It affirmed my belief that a corporation’s goal cannot be just to provide profit to shareholders, but there must also be an element of social responsibility.
Understanding all of the steps involved with innovation is essential for an organization to be successful. There are many aspects involved in managing technological innovation. While a technological innovation can help the organization be successful, it is important to consider social responsibility as well. Social responsibility has becoming an increasing more important as society evolves and moves forward. Organizations that desire long term success understand the importance of social responsibility and how it can affect their organization in a positive way, if executed
It is important to understand the importance of corporate social responsibilities. If Corporate Social Responsibility is properly maintained and emphasized by companies, it can benefit the society, economy and corporate sustainability. It can also be cost efficient to companies. also the environment . But above all effect (CSR) varies companies to companies. Where some corporates seem to make all sorts of benefits from their coporate social responsibilities but few of them are also having loss by trying to maintain CSR without properly evaluating their resources. (Porter and Kramer 2006) has said The inferences where corporates need to evaluate their CSR actions to figure out if they add