Case Study: the Jack Welch Era at General Electric Essay

1013 Words Sep 22nd, 2015 5 Pages
MGT430 Business Government & Society
Mr. Burt

Case Study 2

Please read Case Study: The Jack Welch Era at General Electric in Chapter 5 and answer questions 1 & 3. Please submit the answers by the end of week #3. At least one page is required.


Did GE in the Welch era fulfill its social responsibility duty? Could it have done better? What should it have done?

Chapter 5 in the text, Business, Government, and Society by John F. Steiner and George A. Steiner, corporate social responsibility is defined as the corporate duty to create wealth by using means that avoid harm to, protect, or enhance social assets. General Electric in the Jack Welch Era fulfilled its corporate social responsibility but by marginal measures.
…show more content…
How well did GE comply with the “General Principles of Corporate Social Responsibility” set forth in the section of that title in the chapter?


1. Corporations are economic institutions run for profit and its greatest responsibility is to create economic benefits. GE exceeded its responsibility to respond to markets, ultimately generating a surplus of $21 billion in 2001 in pension funds for example. They also contributed to the economy by employing 404,000 at one point in time. However, there is great argument against this, stating that GE’s management style resulted in mass loss of jobs, eventually reducing its headcount to around 313,000, according to the text.

2. All firms must follow multiple bodies of law; corporation laws and chartering provisions, civil and criminal laws of nations, bodies of regulation that protect shareholders, and international laws. GE failed miserably on mandated actions. According to the text, GE committed 39 civil and criminal offenses, ranging from pollution hazards, consumer fraud, and unfair debt-collection practices, and over charging on defense contracts in the 1990’s.

3. Managers must act ethically. Again, GE failed miserably due to the long “wrap-sheet” the company had during the 1990’s. These civil and criminal transgressions were a direct result of the decision makers, the managers within the company. Clearly it is

Related Documents