Perspectives on social responsibility.
-Classical view
Management's only responsibility is to maximize profits.
-Socioeconomic view
Management must be concerned for the broader social welfare,not just profits.
Zone of compliance
economic Responsibility: be profitable
Legal Responsibility: obey the law
Zone of conviction
Ethical Responsibility: Do what is right
Discretionary Responsibility: Contribute to community
Proactive strategy "Take leadership in social initiatives"
Meet economic, legal, ethical, and discretionary responsibilities
Accommodate strategy "Do minimum ethically required"
Meet economic, legal and ethical responsibilities
Defensive strategy "Do minimum legally required"
Meet economic, legal responsibilities
Obstructionist strategy "fight social demands"
Meet economic responsibilities
Corporate Governance
-Corporate Governance of the top management of an organization by a board of directors.
Corporate Governance involves
-Hiring,firing, and compensating the CEO.
-Assessing strategy.
-Verifying financial records.