In addition, Friedman states that managers are often ill-equipped to be making decisions regarding social interests as they lack the necessary expertise to do so. Contrary to Friedman’s views, scholar Michael Porter offers a different perspective on the role of social responsibility in corporations. In Strategy & Society, Porter asserts that corporate social responsibility is not just an added cost to the business but rather one that can actually be used as a competitive advantage and generate added value to the corporation. Perhaps the biggest difference in the two authors’ opinions is in the role of social
Employment-At-Will Doctrine Christy D. Harris LEG 500: Law and Ethics in the Business Environment April 18, 2012 Instructor: Dr. Shenia Kirkland The Employment At Will Doctrine states that an employer can terminate an employee for any cause or without cause at any given time unless there is a binding contract in which stipulations can hinder the at will termination process. In this paper you will find four scenarios in which the employment at will doctrine is considered in regards to termination of an employee, preventive measures, and legal implications. Scenario One: Jennifer, an employee that was hired out of college has been unable to learn the basic required skills to do her job. Realizing Jennifer’s incompetence and abilities to perform her job responsibilities as the employer I would began addressing the issues properly by using the following steps to be taken based upon skills, competence, and abilities. First step is to issue a verbal warning: If there are signs of cracks, bring them into your office as quietly as possible without embarrassing the employee, and just verbally discuss the issues at hand.
If Newcorp can produce the Corrective Action Plan, the company will have the supported evidence to terminate Ms. Grey base on unsatisfactory performance. In the employee manual signed by Ms. Grey at the start of employment, the company states “If the job performance of an employee is unsatisfactory, the employee will be notified of the deficiency and placed on a Corrective Action Plan (CAP). If the employee performance does not improve to a satisfactory level within the specified period of time, termination will follow.” Ms. Grey will not have a case. If Newcorp cannot produce the Corrective Action Plan, Ms. Grey will have a case. The court will most likely upheld the employee manual for terminating employees for unsatisfactory performance.
The financial being of a corporation starts with shares. Few companies operate with the philosophy of losing money. With that in mind, I believe the shareholders will always be taken care of. However, corporations also need to look at their footprint on the world. I feel that society is steering away from operating purely to make a profit.
It goes beyond philanthropy and compliance and addresses how companies manage their economic, social, and environmental impacts, as well as their relationships in all key spheres of influence: the workplace, the marketplace, the supply chain, the community, and the public policy realm.” (Harvard) So how do these two men define social responsibility and what does it mean to the real world? There seems to be a lot to be here, between their responsibility to the public and their responsibility to the environment and their own business, this can get complicated, and if they do screw up, the media lets everyone know it. As we seen with Enron, once a company screws up, the media is all over it. Several scandals and trouble in the media lately have brought out the crimes of society that billionaires have committed for years. This is dealing with consumers and stock holders, this is dealing with the property that the American public invests in, this is a topic where if a business does not stay on the straight and narrow, public opinion will close out.
According to Friedman, “A corporate executive is an employee of the owners of the business. He has a direct responsibility to his employers and shareholders. That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of the society” (221). The executives of the corporation have a responsibility to the shareholders because the corporation’s money is the shareholders money. As we read in the Forbes article, the author stated: “How did the corporation’s money somehow become the shareholder’s money?
According to Mintzberg "the strategic decisions of large organizations inevitably involve social as well as economic consequences, inextricably intertwined...there is no such thing as a purely economic strategic decision." Corporate competitiveness, corporate governance, and corporate citizenship are the three key pressures that shape the agenda of business leaders today along with the growing pressure on their companies to deliver broader societal value (Smith, 2003). This pressure has been brought on by public reaction to globalization, and distrust of big businesses. In today’s social and political climate by consumers
Corporate executives or individual proprietors can contribute to society personally instead of spending shareholders' money for promoting social reform (Friedman, 1970, as cited in Schwartz & Saiia, 2012). There are some proponents go along with Friedman's theory. It is believed that individuals or institutions continue their investment in firms which have higher profitable returns (Bridwell & Morrison, 2011). Indeed, Bridwell and Morrison (2011) also report that customers seem to be disinterested in motivating companies for exercising CSR. On the contrary, opponents argue that corporations should promote social objective due to its dependence on society.
This no doubt at times is a reality because of budgetary restraints common to many not for profit groups. There are also many employees who feel that because they work for a not for profit, they should not expect similar compensation to those in the for profit realm. Another reason for this tendancy is that some not for profit organizations do not feel an obligation to provide compensation anywhere near the same level as for profit corporations. Instead they rely more on the self sacrificing spirit of the employee to want to make a difference in their community. (Nonprofit Organizations) What can not for profits do to attract qualified employees?
Even though the effects of the financial crisis were negative, and caused many people to lose their jobs, CEOs are still receiving a large salary, which portrays a negative image on their company. This essay explains the effects of businesses responsibility to the environment, that profits are not the only measure that should be applied to corporate success and CEO’s salaries applied to businesses responsibilities. There has been a great deal of controversy in the media over whether businesses have a social responsibility. Businesses already have a responsibility to follow ethical standards and the law. However recent media coverage has demanded that large business should also have a social responsibility.