SOCIAL RESPONSIBILITY

1
SOCIAL RESPONSIBILITY

• Do Corporations Have a Responsibility to Society
  That Extends Beyond Merely Maximizing Profit?
• Presented By
• Jaclyn Dahl
• Amanda Finkelstein

2
Yes, of course they do

• The basis of corporations or firms ideally is to
  maximize profits and create shareholder wealth,
  but the underlying significance behind being a
  successful organization should be its value added
  services.

3
Historical Perspective of Social Responsibility

• Phase 1 Profit Maximizing Management
• Based on the belief that business managers have
  but one single objectivemaximize profits
• Phase 2 Trusteeship Management
• Corporate managers were responsible not simply
  for maximizing the stockholders wealth but
  rather for maintaining a balance among customers,
  employees, suppliers, creditors, and the
  community
• Phase 3 Quality of Life Management
• The metamorphosis in societal goals of raising
  the standard of living to focusing on the social
  problems that have a direct and indirect result
  of economic success

4
Why Social Responsibility?

• 4 areas companies should focus on
• Financial
• People
• Environment
• Community

5
Financial

• PROS
• Abercrombie Fitch, Martha Stewart Omnimedia
  Inc.

• CONS
• Enron Corporation
• Enron lied about its profits, including
  concealing debts so they didn't show up in the
  companys accounts

6
People

• PROS
• Philip Morris Companies Inc.
• Harpo Productions Inc. (Oprah)

• CONS
• Hooker Chemical Co.
• (Love Canal)
• Pfizer
• (Vioxx)

7
Environment

• PROS
• New Belgium Brewing
• Ford Motor Company
• (World Habitat Council)
• Toyota
• (Hybrid Car)

• CONS
• Exxon Valdez
• Fluor Fernald
• (Cincy, OH)

8
Community

• PROS
• Coca-Cola Company
• (AIDS/HIV Africa, Youth Partnership)

• CONS
• Philip Morris in the 80s (advertising, Joe
  Camel, Marlboro Man)

9
New Belgium Brewing Company

• Employee Benefits
• Environmental Concerns
• -cost efficient energy-saving alternatives
• -creative reuse strategies for reducing waste
• Social Concerns
• -improving communities and enhancing peoples
  lives
• -donations
• -community bulletin board

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In Summary

• Organizations have a obligation to society
• Ethical responsibility
• Profit maximization doesnt equal a successful
  company
• Corporations have a direct effect on things
  outside the company
• The customer is the existence of an organization