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

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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…

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