MODERN MANAGEMENT research highlight DOES SOCIAL RESPONSIBILITY HELP A COMPANY'S BOTTOM LINE? This chapter introduces social responsibility as a Stock Exchange over 10 years.The authors modern management challenge,For years,scholars classified the companies as making high,medi- have examined the influence of social responsibility um,or low levels of charitable donations.The on a company's financial performance.In an attempt authors then studied the short-and long-term to add more evidence to this debate,a recent study financial performance of these three groups of by Professors Brammer and Millington examined the firms.Do you think charitable donations led to influence of corporate donations on a company's better or worse short-term performance?What bottom line.15 about long-term performance?Prepare to defend To examine this relationship in detail,the your answers in class. authors tracked 537 firms listed on the London
Modern management
MODERN MANAGEMENT 4.Conclusions about the performance of social responsibility activities by business I.Perform all legally required social responsibility activities. 2.Consider voluntarily performing social responsibility activities beyond those legally required. 3.Inform all relevant individuals of the extent to which the organization will become involved in performing social responsibility activities
Modern management 4. Conclusions about the performance of social responsibility activities by business ▪ 1. Perform all legally required social responsibility activities. ▪ 2. Consider voluntarily performing social responsibility activities beyond those legally required. ▪ 3. Inform all relevant individuals of the extent to which the organization will become involved in performing social responsibility activities
MODERN MANAGEMENT Performing Required Social Responsibility Activities TABLE 3.1 Primary Functions of Several Federal Agencies That Enforce Social Responsibility Legislation -Federal legislation requires Federal Agency Primary Agency Functions that businesses perform certain social responsibility Equal Employment Opportunity Commission Investigates and conciliates employment discrimi- nation complaints that are based on race,sex, activities. or creed In fact,several government Office of Federal Contract Compliance Programs Ensures that employers holding federal contracts agencies have been established grant equal employment opportunity to people expressly to enforce such regardless of their race or sex business related legislation Environmental Protection Agency Formulates and enforces environmental standards (see Table 3.1). in such areas as water,air,and noise pollution Consumer Product Safety Commission Strives to reduce consumer misunderstanding of manufacturers'product design,labeling,and so on,by promoting clarity of these messages Occupational Safety and Health Administration Regulates safety and health conditions in nongovernment workplaces National Highway Traffic Safety Administration Attempts to reduce traffic accidents through the regulation of transportation-related manufacturers and products Mining Enforcement and Safety Administration Attempts to improve safety conditions for mine workers by enforcing all mine safety and equipment standards
Modern management Performing Required Social Responsibility Activities ◼Federal legislation requires that businesses perform certain social responsibility activities. ◼In fact, several government agencies have been established expressly to enforce such business-related legislation (see Table 3.1)
MODERN MANAGEMENT Voluntarily Performing Social Responsibility Activities Adherence to legislated social responsibilities is the minimum standard of social responsibility performance that business managers must achieve. ● Managers must ask themselves,however,how far beyond the minimum the should go. Sara Lee Bakery took voluntary action to help employees who were developing the painful symptoms of carpal tunnel syndrome.Following a thorough investigation,the company asked its own engineers to design new tools for the workers that soon eliminated the symptoms
Modern management Voluntarily Performing Social Responsibility Activities • Adherence to legislated social responsibilities is the minimum standard of social responsibility performance that business managers must achieve. • Managers must ask themselves, however, how far beyond the minimum the should go
MODERN MANAGEMENT Communicating the Degree of Social Responsibility Involvement Determining the extent to which a business should perform social responsibility activities beyond Tegal requirement's is a subjective process. 8e黑，hs have a well-defined position in this vital area and should inform all organization members of that position
Modern management Communicating the Degree of Social Responsibility Involvement ◼Determining the extent to which a business should perform social responsibility activities beyond legal requirements is a subjective process. ◼Despite this subjectivity, however, managers should have a well-defined position in this vital area and should inform all organization members of that position