POSITIVE OUTCOMES:

  1. Enhanced corporate reputation and goodwill.
  2. Strengthening of the social system in which the corporation functions.
  3. Strengthening of the economic system in which the corporation functions.
  4. Greater Job satisfaction among all employees.
  5. Avoidance of issues with government regulations.
  6. Greater job satisfaction among executives
  7. Increased chances for survival of the firm.
  8. Ability to attract better managerial talent.
  9. Increased long term profitability.
  10. Strengthening of the pluralistic nature of American Society.
  11. Maintaining or gaining Customers
  12. Investor Preference for socially responsible firms
  13. Increased short term profitability

 

NEGATIVE OUTCOMES:

  1. Decreased Short term profitability
  2. Conflict of economic or financial and social goals.
  3. Increased prices for consumers
  4. Conflict in criteria for assessing managerial performance
  5. Disaffection of stock holders.
  6. Decreased Productivity
  7. Decreased Long term profitability
  8. Increased Government Regulation
  9. Weakening of the economic system in which the corporation functions.
  10. Weakening of the social system in which the corporate functions.

 

STAKEHOLDERS:

 

SOCIAL OBLIGATIONS OF THE MANAGERS TO VARIOUS STAKEHOLDERS :

  1. STOCKHOLDERS: To increase the value of the organization.
  2. SUPPLIERS : To deal with them fairly
  3. BANKS & LENDERS: To replay debts
  4. GOVERNMENT AGENCIES: To abide laws.
  5. EMPLOYEES & UNIONS: To provide safe working environment and to negotiate fairly with union representatives.
  6. CONSUMERS: To provide Safe Products
  7. COMPETITORS: To compete fairly and to refrain from restraints of trade.
  8. LOCAL COMMUNITIES & SOCIETY: To avoid business practices that harm the environment.

2 thoughts on “OUTCOMES OF SOCIAL RESPONSIBILITY INVOLVEMENT EXPECTED BY EXECUTIVES

  1. How can solially responsible behaviour of a corporate/business weaken the social system in which the corporate functions? from the very definition of CSr we should expect this aspect geting stronger, not weaker? do I miss something?

    I can accept that the economic system in which a corporate functions may eaken short term, as the corporate will have to make choices that short term increase the cost of teh product/services. But shouldn’t a socially responsible behaviour stengthen the economic system of a corporate long term, given that it will set standards for “responsible” business practices, thus avaiding crisis like the ones we are experiencing today?
    tehre is definitly a big contradict in teh sociaty of nowadays: a corporate performance is measured quaterly, while responsible, socially oriented governace pays back in long term.

    Like

    1. Dear Albana Vrioni,

      You are perfectly right.

      What is mentioned here is the perspectives of the Executives.

      They are sometimes expecting that inspite of what ever they do, the social system will get weakened and that concern of not being effective stops them in taking action.

      It is the sense of not being big enough to make a difference.

      I hope that communicates.

      Feel free to write back for any other questions/ clarifications.

      Thanks
      Manoj Onkar
      MANAGEMENT INNOVATIONS
      http://www.linkedin.com/in/manojonkar
      http://www.managementinnovations.wordpress.com

      Like

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