Essay on Welch Case Study

1465 Words Jan 4th, 2014 6 Pages
Welsh Case

This particular case discusses whether General Electric fulfilled its Corporate Social Responsibility under the leadership of Jack Welsh or if it just met basic obligations. It also displays the evolving idea of social responsibility in a corporation by contrasting the corporation’s actions during Welsh’s leadership and after Welsh retired. It is shown that Welsh had a classical economic view of social responsibility. General Electric followed a traditional business model while Welsh was working and a progressive business model after he retired. He used a cutthroat ranking system based off of social Darwinism in order to sort out the “best” of his employees. Lastly, it displays that norms and principles are always
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In GE Welsh did not practice an intermediate circle of responsibility because it did not exercise its economic function with a sensitive awareness of changing values and priorities, especially in relation to environmental damage. During this time there were many changing values of incorporating diversity in the workplace, protecting the environment and preventing damage, and the change of business ethics. The view of corporate social responsibility was changing to a model more similar to the progressive business model yet Welsh adhered to a strict traditional business model. GE especially ignored the outer circle of social responsibility because it did not try to improve the social environment by any means.

3. Overall, Welsh’s GE met less than half of the general principles of corporate social responsibility. GE religiously followed the principle that corporations are economic institutions run for profit. Welsh’s highest concern was economic and he was not afraid to suffer short run costs to society if they promised long-term benefits. The only aspect they did not meet for this principal is that they did not seek ways to solve social problems at a profit. They simply did not seek to solve any social problems at all. The only principle that was generally highlighted by GE was that managers should try to meet legitimate needs of multiple stakeholders. The corporation always tried to bring in the largest gains for their shareholders. Welsh’s GE failed to

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