Corporate Social Responsibility Ge - 1126 Words

1. Corporate social responsibility is defined in Chapter 5 as the corporate duty to create wealth by using means that avoid harm to, protect, or enhance societal assets. Did GE in the Welch era fulfill this duty? Could it have done better? What should it have done? By using the definition in the text book there is no question that GE created wealth. In the case study the author uses the example of an investor who put $100 into GE in 1980. If that investor would hold on to the GE stock that investor would have a return of $6,749 when Welch retired. GE under Jack Welch was the most profitable company of its time, but was the wealth it created socially responsible? Was GE looking at different ways to avoided harm to, protect and enhanced†¦show more content†¦Friedman felt that Governments should run social programs, not corporations. In the free enterprise system managers are responsible only to stockholders. Spending money on social projects wrongly appropriates money that belongs to the company. It also robs consumers, who must pay higher prices for products. Friedman argued that this is â€Å"taxation without representation.† Corporate Social responsibility threatens political freedom because it requires that companies perform political functions, gives executives political power, and opens business to evaluation by political criteria. Friedman also argued that corporations should not take on political and social projects outside of their economic expertise. Friedman Idea argues that the only social respon sibility companies have are to maximize profits while staying within the law. According to the case study Friedman’s ideas seems to characterize the attitude of Jack Welch while he was in Charge at GE. Welch concentrated on playing the competitive game, building dominant businesses, and making money. Although GE did give money to different causes and charities, never emphasized any social responsibility, and focused the company on only increasing the shareholders return on investment. Welch agreed with Friedman’s view that managers should give primacy to the interests of shareholders. 3. HowShow MoreRelatedEssay about Welch Case Study1466 Words   |  6 PagesCase This particular case discusses whether General Electric fulfilled its Corporate Social Responsibility under the leadership of Jack Welsh or if it just met basic obligations. It also displays the evolving idea of social responsibility in a corporation by contrasting the corporation’s actions during Welsh’s leadership and after Welsh retired. It is shown that Welsh had a classical economic view of social responsibility. General Electric followed a traditional business model while Welsh was workingRead MoreGe Case Study Essay1458 Words   |  6 Pages 1. Corporate social responsibility is defined in Chapter 5 as the corporate duty to create wealth by using means that avoid harm to, protect, or enhance societal assets. Did GE in the Welch era fulfill this duty? Could it have done better? What should it have done? I believe that Welch only fulfilled one portion of his corporate social responsibility duty. Financial results for GE show that Welch was very effective in directing a highly profitable company, but he did so at the expense of manyRead MoreThe Jack Welch Era at General Electric Essay example988 Words   |  4 PagesElectric (GE) for 20 years from 1981 to 2001. Jack transformed GE, taking a solidly profitable manufacturing company and turning it into an exceptionally profitable conglomerate dominated by service business. As such a big company who was running businesses for decades, GE has a lot of social responsibilities. 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Corporate social responsibility is defined in Chapter 5 as the corporate duty to create wealth by using means that avoid harm to, protect, or enhance societal assets. Did GE in the Welch era fulfill this duty? Could it have been done better? What should it have done? Jack Welch did make GE the most valuable company in the world. He was described as â€Å"the most important and influential business leaders of the 20th Century† by some Wall Street analyst. Nevertheless, Jack Welch as the CEO did notRead MoreEssay on Corporate Social Responsibility (CSR)3709 Words   |  15 PagesIntroduction This paper will discuss what major corporations doing with regard to corporate social responsibility. It will then investigate thoroughly five five major corporations which are leaders in community outreach and involvement: General Electric, DuPont, Motorola, ExxonMobil and Microsoft. 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