Homework Clinic
Social Science Clinic => Business => Management => Topic started by: Davideckstein7 on Oct 23, 2019
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In a short essay, describe the four-stage model of the progression of an organization's social responsibility.
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A stage 1 manager will promote stockholders' interests by seeking to minimize costs and maximize profits. This is consistent with Friedman's classical view of social responsibility. At stage 2, managers expand their responsibility to employees. Because they'll want to recruit, keep, and motivate good employees, stage 2 managers will improve working conditions, expand employee rights, increase job security, and focus on human resource concerns. At stage 3, managers expand their responsibilities to other stakeholders in the specific environment, primarily customers and suppliers. Socially responsible actions of stage 3 managers might include fair prices, high-quality products and services, safe products, good supplier relations, and similar actions. Their philosophy is that they can meet their responsibilities to stockholders only by meeting the needs of these other stakeholders. Finally, stage 4 managers characterize the highest level of socio-economic commitment and feel they have a responsibility to society as a whole. They view their business as a public entity, and feel a responsibility for advancing the public good. The acceptance of such responsibility means that managers actively promote social justice, preserve the environment, and support social and cultural activities. They do these things even if such actions negatively affect profits.