Strategic Management: Formulation and Implementation

Social Responsibility And Corporation

In earlier times managers had only to concern themselves with the economic results of their decisions. Today it is generally accepted that business firms have social responsibilities.

Social responsibility is complex because must be made in a wide variety of areas. It encompasses three major areas for social issues:

  1. Total compliance with international, federal, state, and local legislative laws and acts.
  2. Moral and ethical standards and procedures under which the firm will operate.
  3. Philanthropic giving.

Some factors that must be considered are:

- Unique laws and codes of ethics in each country
- Taxes, price fixing, and bribery
- Joint venture as differentiated from full ownership of foreign operations
- Training of foreign nationals
- Control of air, water, solid waste, radiation, noise, land, and chemical pollution
- Safety standards
- Health care
- Education
- Equal opportunity regardless of race, sex, age, handicap, religion, or creed
- Unemployment
- Inadequate transportation
- Product safety, packing, and quality
- Pricing
- Support of the arts
- Other areas of community enrichment.