International Business
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PPTSample.pptx
Unit III Power Point
The comparisons of Business and Social Responsibility
The worldwide economy needs a laissez-faire return
There needs to be a minimum of government regulations
Against the notion of social responsibility including:
Cutting the price of a product to prevent inflation
Paying for expenditures to decrease pollution
Hiring notorious unemployed people
Social Responsibility goes against economic motives and can end up hurting the society it was helping.
Friedman’s Traditional View of Business Responsibility
Friedman’s Traditional View of Business Responsibility cont.
Social responsibility can cause:
prices to go up for new activities
postpone research
Long-term efficiency to be impaired
Friedman refers social responsibility as “fundamentally subversive doctrine”
The social responsibility should be to:
Use resources to increase profits
engage in competition without deceiving or committing fraud
Carroll’s Four Responsibilities of Business
Four Responsibilities of Business: Economic, Legal, Ethical, Discretionary
Listed in importance
Economic responsibility
Produce goods and services
Society sees them as a value
Firm repays creditors and shareholders
Legal responsibility
Obey laws by the government
Firms hire and promote through credentials
Can’t discriminate on religion, race, and gender
Ethical responsibility
Follow beliefs expected of society’s behavior
Involve the community and employees for firings
Unethical behavior leads to resentment
Discretionary responsibility
Corporation volunteers
Charitable contributions
Focus on unemployed
Offer day-care centers
Companies that violated laws have lower profits
After conviction companies has lower sales growth
Carroll’s Four Responsibilities of Business cont.
Implemented principles needed for the work place
Legal:
laws need to justify hiring, firing, and protecting workers
No discrimination offering an equal workplace
Benefits for employees, community, and business
Ethical
Removing products that can lead to health problems
Proper Gear for Hazards
Can show loyalty buy being socially responsible
Leads to increase economic profit
Discretionary:
A severance package giving workers benefits
Rehiring workers that were laid off
Friedman's Examples
Chevron
focused on profits regardless of the environment.
$26.2 billion in sales in 2012.
lawsuit in a Brazil due to oil spill
Agreement concluded 300 million reais (about $130 million) in compensatory actions
3,600-barrel spill in the ocean northeast of Rio de Janeiro.
Goes against there own policies
August 6, 2012 fire at a plant in Richmond, California The EPA filed a notice citing 62 violations of federal environmental laws
Friedman’s Examples cont.
Chevron cont.
U.S. Chemical Safety Board reported that Chevron found that they ignored their own safety recommendations
Microsoft
Focused on profits and control of consumer
Microsoft’s Xbox One
Forces people to buy the Kinect for $100 more
Xbox One DRM Policy:
Required Online Connectivity
No Pre-owned games
Consumer feedback resulted in reversible of policies
Example of Carroll’s Theory
Chick-fil-A
Gave $68 million in contributions to over 700 educational and charitable organizations
Donated $7 million towards scholarships and educational development
Answers to disasters by providing 12,000 sandwiches to victims and relief workers
Care’s for the youth as they donated $3 million per year to operate 12 foster homes.
Is second largest fast food chicken restaurant 1,700 locations.
2012 annual sales were over $4.6 billion
Carroll’s Theory Example cont.
Goodwill
Equal focus involving the 4 responsibilities
Does not discriminate
Works with people of all back grounds including criminal
trained over 6.7 million people for jobs
134 million mission services provided
Economic profit of $4.89 billion total revenue
References
Chick-fil-A. (2014). A Commitment to Higher Education. Retrieved from http://www.chick-fil-a.com/Company/Responsibility-Giving/Youth-Education
Chick-fil-A. (2014). Giving Back. Retrieved from http://www.chick-fil-a.com/Company/Responsibility-Overview
Chick-fil-A. (2014). Providing Disaster Relief. Retrieved from http://www.chick-fil-a.com/Company/Responsibility-Giving/Local-Communities
Chick-fil-A. (2014). WinShape Homes. Retrieved from http://www.chick-fil-a.com/Company/Responsibility-Giving/Families
Chevron. (2014). Chevron Reports Fourth Quarter Net Income of $4.9 Billion and 2013 Earnings of $21.4 Billion. Retrieved from http://www.chevron.com/chevron/pressreleases/article/01312014_chevronreportsfourthquarternetincomeof49billionand2013earningsof214billion.news
References
Dearen, J. (2013, December 17). Chevron Failed To Maintain Equipment Causing California Refinery Fire, EPA Says. The Huffington Post. Retrieved from http://www.huffingtonpost.com/2013/12/18/chevron-refinery-fire-epa-california_n_4462332.html
Frum, L. (2013, June 21). Microsoft backtracks on Xbox One sharing policies. CNN Tech. Retrieved from http://www.cnn.com/2013/06/19/tech/gaming-gadgets/xbox-drm/index.html?iref=allsearch
Goodwill. (2014). Retrieved from http://www.goodwill.org/about-us/
Hunger, J. D & Wheelen, L. T (2010). Concepts in strategic management and business policy. Boston, MA: Pearson Learning Solutions.
Reuters. (2013, September 13). Chevron and Brazil Reach Deal on Oil Spill. The New York Times. Retrieved from http://www.nytimes.com/2013/09/14/business/global/chevron-and-brazil-reach-deal-on-oil-spill.html
