Corporate Social Responsibility
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Corporate Social Responsibility
Aaron Feuersteins view of corporate social responsibility is that the CEO must take care of the shareholders but that they also have a responsibility to the community and workers. Take a position on whether or not this view is possible in business today?
I do agree that the CEO of any company should take the responsibility of not only the shareholders, but the community and its employees. Its not an easy task, but it can be done if all the executives in the company also help with this responsibility. I believe that its the CEO responsibility to make sure that consumers are not taken advantage of just for profit gain. Yes, I know thats every business goal, but it does not mean that you have deceive or defraud the public to do so. I do believe that this position is possible in business today. There have been several businesses that refused to take advantage of their customers just to make a profit. For example, such as in the case study of Home Depot, when they had the opportunity to raise their prices during the wake of Hurricane Katrina, but instead they did not, instead they lower their prices in the efforts to help customers purchase and afford hurricane lumber.
Discuss the vision for Malden Mills held by Aaron Feuerstein and Jack Welch, CEO of GE capital who took over the company after it filed bankruptcy. In your judgment which vision is best for the company and why?
Aaron Feuersteins vision was to rebuild the business on the same site and put everyone back to work. He was committed to keeping jobs in the community and keeping employees employed, however he loss site of making profits and the security of the company. Aaron Feuerstein was a compassionate and loyal man. He was a hands-on type of guy, thats why he worked closely with his customers. On the other, Jack Welch was callous and all about making profits, which was the totaled opposite of Aaron Feuerstein. Aaron Feuerstein continued to pay the salary and benefits of 3,100 affected employees, while the business was being rebuilt. “This heartfelt concern for the companys workers and the community won Mr. Feuerstein widespread acclaim as an exemplar of corporate social responsibility”(Boatright, 2009 p. 348). According to the textbook, “Mr. Feuerstein received numerous awards, invitations to speak, and honorary degrees at a time when Americans were disturbed by massive layoffs ordered by highly paid CEOs”. President Bill Clinton invited him to a conference on corporate social responsibility and mentioned him in his 1996 State of the Union address” (Boatright, 2009 p. 348). “Feuersteins pledge to continue paying his workers eventually cost them their jobs, and cost Feuerstein his company. Feuerstein ran out of money, and Malden Mills was forced to declare bankruptcy”. “Welch, on the other hand, turned GE from a sleepy home-appliance company into an international mega-corporation that today is a leader in several industries”(Boatright, 2009 p. 349). Jack Welchs vision was the best choice for the company because his drive for profits would keep the business afloat and thriving for years to come. Though, Aaron Feuerstein was a terrific, generous, and loyal and caring boss, his generosity caused him to go bankrupt and lose his business. However, I do admire Aaron Feuerstein for trying to keeps jobs in the states and not outsourcing his business to Asia.
References
Boatright, J. R. (2009). Ethics and the conduct of business, 6th Edition, Pearson. Upper Saddle
River, NJ; Prentice Hall.