The globalization of the business environment has had a remarkable impact on issues of social responsibility. As organizations become involved in the international field, they often find that their stakeholder base becomes wider and more diverse. As a result, they must cope with social responsibility related issues across a broad range of cultural and geographic orientations.
The four strategies for social responsibility represent a range, with the reaction strategy on one end (i.e., do nothing) and the proaction strategy on the other end (do much). The defense and accommodation strategies are in the middle. (reaction, defense, accommodation, and proaction). Examples of firms that have pursued these strategies are as follows:
- Reaction: Over 40 years ago, the medical department of the Manville Corporation discovered evidence to suggest that asbestos inhalation causes a debilitating and often fatal lung disease. Rather than looking for ways to provide safer working conditions for company employees, the firm chose to conceal the evidence. It appears that tobacco companies have done the same thing.
- Defense: Over the years, rather than demonstrating social responsiveness in terms of air pollution reductions, vehicle safety, and gas shortages, the automobile companies did little to confront the problems head on. Currently, the high demand for pickup trucks and SUVs encourages the problem to continue.
- Accommodation: Many financial service companies, along with meeting the minimum requirements of disclosure regulations, maintain a more proactive code for voluntary, on-demand disclosure of bank information requested by customers or by any other member of the public.
- Proaction: Becton Dickinson & Company is a medical-supply firm that has targeted its charitable contributions to projects it believes “will help eliminate unnecessary suffering and death from disease around the world.” Similarly, Starbucks makes contributions to literacy programs and was one of the first companies to give health benefits to partners.
9 Comments