ENTERPRISE MANAGEMENT

Enterprise Management

Social Responsibility of Managers

Introduction

Business is an organization that strives for profits for its owners while meeting the needs of its customers and employees and balancing the impact of its actions on other stakeholder. The main aim of it is making profit. On the other hand, they also have some social responsibility. Responsibility is using one's property (both tangible and intangible) in a manner that does not unduly infringe on the freedom of others.(Ellis,1991)

Discussion

Social responsibility is an important issue among corporate management. Responsibilities can be defined as a set of obligations an organization has to protect and enhance in the society in which it functions. There are a few main components of social responsibilities. All businesses have responsibilities to its customers. The paramount duty in this respect is to provide customers with quality and safe products. Unfortunately, not all businesses follow this rule. The example of such deception is the tobacco industry, which deliberately manipulated the level of nicotine in cigarettes.(Buchanan,2001)

Despite its declaration of managers, scrutinized research made it clear that industry tried to maintain the addictive level of nicotine. The purpose of it was far from humanistic, addicted smokers kept buying cigarettes, making the industry prosperous and profitable. There have been a number of other different customer abuses such as sale of fruits with overdosed chemicals and breast implants for women.(Mckenna,2000)

Social responsibility towards employees

In the best tradition of participative management, the organization invited all its employees to join in forging a new statement of values to avoid massive layoffs. These included teamwork, mutual respect, and professionalism, all duly inscribed on, among other places, coffee cups at office, so that, "every time you had some coffee, you drank the values, too. Employee's needs must be met if the business itself is to prosper. Relationships of decency and trust are central to the achievement of the business aim. (Drucker, 1991)

Social responsibility towards Stakeholders

Responsibility of a company's management is to its stockholders. Managers are in control of the property stockholders, however, the interests of these two groups may not be the same. As managers are looking for more power and prestige, they can tend to lean towards less profitable operations. Also corporate officials may vote for high salaries and bonuses for themselves, decreasing the dividends of stockholders.(Buchanan,2001)

Social responsibility towards customers

The responsibilities to its customers are a crucial point of management, the way managers treat employees is another parameter of evaluation of companies ethical well-being. Unfortunately, the main concern of managers is their own jobs rather than theirs employees. Another problem is equal employment opportunities for everyone. Although a lot has been done to destroy the system that kept women and minorities away from the top management positions, many corporations still rely on "white men's" stereotypes and prejudice. Women are considered as accessories for men and are not treated equally. In fact, many firms attitude toward employees often determines the way employees feel about the company.(Robin,1991)

There is a strong positive relationship between levels of social responsibility and ...