Treadwell Case Analysis

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Purpose Statement
The purpose of this memo is to explain our decision to retain a full-time manager at TreadWell. Concerns of the Silent Partners
We believe the primary concern of the silent partners is maximum profit because they want to receive the greatest return possible from their investment. The involvement of the silent partners in the company is limited to their financial contributions in addition to gaining subsequent profits or suffering losses. Prioritizing profit over all other concerns is consistent with the shareholder model. The shareholder model states, “A view of social responsibility that holds an organization’s overriding goal should be profit maximization for the benefits of the shareholders” (Williams, 80). Therefore, a silent partner is in favor of increasing the bottom line in accordance the stockholder’s model. Consequently, the method in which the profit is enhanced …show more content…

A proactive strategy is, “a social responsiveness strategy in which a company anticipates a problem before it occurs and does more than society expects to take responsibility for and address the problem” (Williams, 85). A more minimal social responsiveness strategy might dictate that we go ahead and try to maximize our profits and adjust our policies as we go. However within the framework of a proactive strategy we anticipate possible reactions from the community and our employees and retain the employee as it is in their best interest. It has been shown that adopting a proactive strategy is not only beneficial for the stakeholders but also for the shareholders as there is “a small positive relationship between social responsibility and economic performance that becomes stronger when a company or its products have a positive reputation for social responsibility” (Williams,

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