The Jack Welch Era at General Electric

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Truc Duong James Riley MGMT 4500 July 8, 20142014 The Jack Welch Era at General Electric During the Jack Welch Era, General Electric (GE) was one of the most valuable companies in the world. Jack Welch was a CEO of GE since 1981. He was lauded for his creative management style and became a national business hero. (Steiner & Steiner, p.143). Welch’s management created wealth for shareholders. So, Steiner said that “If you had invested $100 in GE stock when Welch took the reins and held it for 20 years, it would have been worth $6,749”. (Steiner & Steiner,p.143). Welch’s management also seemed to protect and enhance societal assets. Welch acquired these businesses to improve them and reap the profits in the process. GE in the Welch era had high rate of profitability to its shareholders that boosted economic growth- market actions. According to the text book definition, corporate social responsibility is the corporate duty to create wealth by using means that to avoid harm to, protect, or enhance societal assets. Jack Welch contributed to society by paying $5.7 billion tax for a government in 2000. Taxes can be considered as the major income of the government. If the government has enough money, the government can improve the basic needs of our society. Everyone could benefit from it. In addition, Jack Welch did some voluntary actions. GE foundation made $40 million in grants to colleges, universities and nonprofit groups in the United State and worldwide. (Steiner & Steiner, p.143). In 2000, current and former GE employees volunteered one million hours of community service. GE had met at least GE enhanced societal assets. However, GE during the Jack Welch era failed to comply with the general principles of social responsibility. He failed to meet the most important, corporate behavior must

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