Strategic managers can consider four types of social commitment ,economic responsibility is one of them:
Economic responsibilities are the most basic social responsibilities of business. As we have noted, some economists see these as the only legitimate social responsibility of business. Living up to their economic responsibilities requires managers to maximize profits whenever possible. The essential responsibility of business is assumed to be providing goods and services to society at a reasonable cost. In discharging that economic responsibility, the company also emerges as socially responsible by providing productive jobs for its workforce, and tax payments for its local, state, and federal governments.
Economic responsibilities: The duty of managers, as agents of the company owners, to maximize stockholder wealth.
More from this Section
- Strategic positioning
The way a business is designed and positioned to serve target markets.
- Realistic job preview (RJP)
To increase employee job satisfaction and reduce turnover, managers should consider a realistic job preview (RJP), which includes both
- Human relations view of conflict
The view that conflict is a natural and inevitable outcome in any group and need not be negative but has potential to be a positive force in
- Social Factors
The social factors that affect a firm involve the beliefs,values,attitudes,opinions,and lifestyles of persons in the firm's external environment, as developed from cultural,ecological,demographic,religious,educational and ethnic conditioning.
Self-actualization- a person’s needs for growth, achieving one’s potential, and self-fulfillment; the drive to become what one is capable of becoming.
- Task-based structure
Task-based structure is a structure in which a group of people required to accomplish a given task are brought together based on their skills rather than
- Basic corrective action
Basic corrective action that looks at how and why performance deviated before correcting the source of deviation. It’s not unusual for