Welch's Corporate Social Responsibility During Essay

Length: 3 pages Subject: Business Type: Essay Paper: #62002455 Related Topics: Social Responsibility, Social Norm, Employee Morale, Social Worker
Excerpt from Essay :

Well, GE under Welch certainly did make a profit, but at the expense of many of the stakeholders and certainly at the expense of the environment and many laws. They did not address the social inequities their operations caused, either in the Hudson River or in the case of the many displaced workers who were put out of work due to Welch's management principles and his ruthless cost-cutting measures. While GE does engage in philanthropy, it treated its own stakeholders with disregard and that is dismaying, and in complying with the general principles of corporate responsibility, GE really gets a failing grade in almost every area. They took a company that generated employee loyalty and respect, and turned it into a company that treated employees like second-class citizens who could be fired on a whim, and that was soundly Welch's doing, leading his company down a path that was far from corporate social responsibility on many levels.

Ranking shareholders over employees can be incredibly debilitating to a company in the long run. Losing the loyalty of employees and creating an atmosphere of fear is never a positive step in the workplace. It can lead to poor employee morale, internal bickering, a lack of


Employees are not costs of production; they are the actual soul of the company, the people that create and manage the goods and services the company provides. They have a vested interest in the viability of the company, and when they are ranked less important than shareholders and the bottom line; it can lead to all kinds of internal problems and distress. When an employee knows they are not important to the bottom line, they lose interest in their work and productivity, and they lose interest in the company that is no longer loyal to them, too. GE could have handled employees very differently in an attempt to be more socially correct, and they could have been more responsible in the way they dealt with communities affected by their actions, as well. If it had rebalanced its priorities, it might not have been quite as fiscally successful during the Welch years, but it would have been a much better place to work and do business with, and those are important elements of corporate social responsibility.

In conclusion, Jack Welsh is seen as an extremely successful manager who brought GE incredible profits. However, he seems like a ruthless individual who generally ignored almost every aspect of corporate social responsibility in his attempt to bring great profits to GE. His treatment of employees was especially volatile, and his demands for lower taxes and other concessions brought communities hardships that were not acknowledged or addressed, as did the outsourcing of many jobs and factories. GE may be profitable, but they got that way at stakeholders' expense, and that makes it unprofitable…

Cite this Document:

"Welch's Corporate Social Responsibility During" (2009, January 17) Retrieved April 12, 2021, from

"Welch's Corporate Social Responsibility During" 17 January 2009. Web.12 April. 2021. <

"Welch's Corporate Social Responsibility During", 17 January 2009, Accessed.12 April. 2021,

Related Documents
Social Corporate Responsibility The Source of Conflict
Words: 3932 Length: 13 Pages Topic: Business Paper #: 24418376

social corporate responsibility? The source of conflict CSR with profitability Opposing Friedman: The view of others In the article "the social responsibility of business is to increase its profits" by Milton Friedman, he takes the position that various corporations can never be socially responsible. He believes that it's only the people in the company who have responsibilities. Friedman (1970) suggests that the concept of social responsibility should be taken by corporate executives of

Jack Welch Leadership Strategies
Words: 9411 Length: 25 Pages Topic: Leadership Paper #: 33612556

Jack Welch Leadership Strategies Jack Welch is rated as the greatest CEO of the current generation and one of the greatest business leaders of all times. The legendary leader, donned the top post in General Electric (GE) from April 1981 to September 2001, taking the company from mediocre levels to the very top levels, in the process turning the very basic concepts on which businesses were run till then. When he

Corporate Universities"-Investigation of Their Development
Words: 16387 Length: 60 Pages Topic: Recreation Paper #: 62224137

In summary, we recommend that the IESBA reconsiders the proposals in the Exposure Draft and provides more guidance on safeguards applicable to sole practitioners and small accounting firms to ensure that the benefits of the changes outweigh the costs to SMEs. Under a principle-based approach, there should be safeguards and practical relief for all practitioners rather than rules-based outright prohibitions. The rewrite of this Independence component of the Code

International Business Expansion Process. International Recruitment...
Words: 11013 Length: 35 Pages Topic: Business - Management Paper #: 67287537

international business expansion process. International recruitment and selection brings a number of challenges for business organizations. They not only face difficulties in hiring the desired skillful staff from the host country, but may also have to deal with severe financial and cultural diversity issues. Through this research study, an effort has been made to highlight the major challenges and issues which make the international recruitment and selection process more complex

Dell Company Thank You for
Words: 2030 Length: 7 Pages Topic: Business Paper #: 61870489

This helps to provide a higher level of value to charitable organizations and encourages volunteerism on an ongoing basis. But One Dell: One Community is more than just volunteering. Dell have been introduce some special edition laptop in Malaysia like studio 14 and 15 which comes with some artistic style designed by Mike Ming, Derek Welch, Andrea Rosenberger and (PRODUCT) RED. All this laptop offers 10+ original designs for customers

Organizational Behavior Include a Wide
Words: 2161 Length: 7 Pages Topic: Business - Management Paper #: 90854008

When Immelt took over as CEO of General Electric in 2001, he pledged to continue the tradition of Six Sigma that had been created by Jack Welch. However, in the years that have passed since Immelt gained control, the GE organization has struggled to maintain the same quality of culture that existed under the leadership of Welch. Brady (2004) interviewed Immelt about his position on Six Sigma in the