Essay on Social Responsibility - 1055 Words

When a company makes a strategic decision it is important to evaluate the impact of the ethical consequences toward the company and the stakeholders. Often a company will make a strategic plan based on profit; however, social responsibility looks outside of profits and determines the effects on all stakeholders including customers, environment, and society. In addition, the strategic decision should also be based on the code of ethics set forth by the organization. Furthermore, when determining the development of a strategic plan, the organization may either use the views of Milton Friedman or Archie Carroll (Wheelen, 2010). Two Views of Social Responsibility Milton Friedman and Archie Carroll have two opposing opinions of social†¦show more content†¦Carroll states a company should go beyond the legal requirement and look how to treat its employees fair in accordance to the society’s behavior. Furthermore, the discretionary responsibility of an organization boosts the reputation of the company. This is done through supporting charities, providing day-care for employees, and providing employee education reimbursement programs (Wheelen, 2010). The Role of Ethics A company can make a strategic plan that is perfectly legal; however, may also be unethical. Ethics is the recognized conduct in which a company performs is operations. However, law is the regulations of government that monitors the conduct of a company (Wheelen, 2010). For example, it is legal for a company to outsource its phone center from a city in the United States to a city in India. The decision may be beneficial for the shareholders to save money on utilities, salaries, and benefits. However, the stakeholders who were employees in the United States are now unemployed and may not find employment for a period of time. Even though this strategic decision may be legal and save the company money, it may also be viewed as unethical to the employees who lost employment. In addition, another stakeholder involved is the customers. Instead of speaking with someone in customer service who speaks English as their primary language, the customer is now speaking to someone in IndiaShow MoreRelatedSocial Responsibilities And Social Responsibility1490 Words   |  6 PagesThe ever-growing social demands and the intense competitions between individuals continuously change education institutions’ behavior. This perspective comes from the socio-economic environment. Under this circumstance, more attention has been paid to Social Responsibility (SR) that all organizations need to take for the interests and welfare of the society (Vasilescu et al., 2010). 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