There are many ways on how people can show their concern for society and the environment. It can be done in their little ways like segregating the garbage at home and can be carried on up to their place of work, the business organization where they belong to.
There are two contrasting views on what a business organization should focus on. First is the classical view, supported by Milton Friedman, which states that the main objective is to maximize profit. The other view states otherwise, that the management of a business organization should also take into consideration the welfare and the better good of the society and not just give importance to making profit. This socioeconomic view is supported by Paul Samuelson .
The new trend in the business society is known as “corporate social responsibility” wherein an organization obliges itself to satisfy its own interests and serve the society. To be able to fully perform this, there are four levels of strategies to be followed; namely obstructionist, defensive, accommodative and proactive. For the first level, the obstructionist strategy, it only acts within its economic priorities and social demands not related to these priorities are not given value. Defensive strategy, second level, the organization conforms to legal requirements to protect itself. For accommodative strategy, it already operates within economic, legal and ethical criteria. The activities conform to the norms, values and expectations of society. And for the proactive strategy, the highest level, the organization takes lead in responding to societal issues. At this point it satisfies all criteria of social responsibility, including discretionary acts. It must be noted that as the entity shifts to a higher level, the commitment to social performance also increases.
Posted by: Fadul, Anthea Mikhaela L.Source: Schermerhorn,2008
5 comments:
very informative!
true,true,true...very intellectually stimulating.
good that you shared this information!
i strongly believe that companies should not be confined to just maximizing profit. I agree with Paul Samuelson's socioeconomic view. Since these companies are operating within the society and people are the ones responsible for their success, they should give back something in return too.
i wish that business firms can go up to the proactive strategy. That they act to satisfy their own discretionary responsibility and not because norms or rules oblige them to .
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