The Dangers of Social Responsibility - Essay Example

Social Responsibility: Summary of Article and Case Study ‘The Dangers of Social Responsibility’- Theodore Levitt Synopsis Although social responsibility has proved to have a number of benefits, various quarters from the free and individualistic enterprise systems have come out strongly against the concept. All the same, the acceptance of social responsibility has been through voluntary means and not imposed on any individual businessperson. According to Theodore Levitt, the social responsibilities and welfare do not form part of the interests of a particular corporate system. With this in mind, it is important to bring into attention the fact that businesses must collide with governments in order to meet the various needs of a particular welfare state. This would mean that such businesses would do anything to evade the monolithic trends, which could be adversarial economically. Usually, a number of corporates engage in social responsibilities for their own reasons, even if the motives behind their participations raise questions. As a way of showing charity and concern for the surrounding community, most corporates participate in certain social responsibility programs in which they too stand to gain. In essence, the main motivation behind the participation in corporate social responsibilities for most corporates include gaining public trust, indicating business diplomacy, and as a way of looking into the welfare of the employees. Perhaps it is important to reveal that these corporates merely masquerade under the guise of such virtues while their main objective in this course is to set a defensive maneuver against a wide array of critics as to the manner in which they make profits. In ardent efforts to protect their profits, these big companies stage-manage their social responsibility programs as to paint a self-righteous light in the public gallery while in real sense they run the risk of being perceived as being self-conscious. Important Features, Facts, and Highlights from the Article Since the competition in the corporate world is rather heightened, most corporates come up with various strategies including the nonprofit approach towards certain aspects of their businesses. This could be because of either flopping in the market or simply trying to settle business scores. Nonetheless, it is incumbent upon organizations to show that they care about the public and that their efforts are not only reflected in the huge protest that they make but instead incorporating social responsibility into their management plans. In the contemporary world, Marxism is the way to go for the corporates as capitalism only erodes the integrity of the companies. This means that a good company in social responsibility terms is one that is the public benefactor. Perhaps it is important that the self-persuaders are not Marxists by nature but rather capitalists who would like to blow the wind from the sail of their critics. This fundamentally means that the inherent self-interest of such big corporates is still alive and kicking but they want to distract the attention of their real critics by participating charitable programs. While some companies may be in the game for selfish gains, it is important to categorically state that a number of corporates participate in social responsibility programs for the benefit of the public. Overall, a number of benefits accrue due to participation in corporate social responsibility and some of these may include enhanced efficiency, high returns in terms of cash, and high morale. Undoubtedly, the concentration of power at a central place poses some level of danger to both the organization and its environs. For instance, considering the collapse of unitary states ruled by Hitler, Mussolini, and Stalin, it is apparent that power has to be devolved even in the corporate world in order to attain a state of maximum social responsibility. Moreover, capitalism can only flourish in an environment of pluralism, meaning that there has to be separation of power to various quarters so that social responsibilities take place across the board and not because of receiving orders from a centralized system of governance or management for that matter. When it comes to embracing matters unionism within the corporate sector, it is worthy to note that unions that are more progressive thrive in the modern corporate world due to the historical struggle by both communists and pseudo humanitarians. This actually means that unions are there to protect the welfare of the employees irrespective of what the organizational policies dictate. By guarding against any form of ill will and unfavorable conditions towards the workers, the unions promote social democracy and perhaps this is the reason for its popularity since its inception. While the ancient American bigwigs who owned the major corporates were opposed to the whole concept of unionism, it is important to mention that social responsibility in the corporate world was an idea whose time had come and therefore they had to embrace it although unwillingly. Gradually, we are headed towards a monolithic society whereby the corporate world has to resolve so many issues among them the employee welfare and the social burden. Besides, monolithic societies can handle the social responsibility concept in a more professional and reasonable manner than it is being handled by the unions. While it is important to incorporate the so called ‘people’s capitalism’, it is worthy to note that materialistic motives could work better only if the leaders at the management level could listen and act accordingly. At least the evidence of this is seen when the Soviet adherents tried in futility to pursue the ‘people’s capitalism’ at the expense of the materialistic approach. Another factor that features prominently in the article is the incorporation of power whereby there is so much trouble in the corporate world because of excessive government involvement. Certainly, the government ought to act as a player rather than an umpire in order to provide a level playground for all the stakeholders. This competition between the government and the private sector including the corporate sector is creating confusion among the public because each one of the rivals tends to pull the public towards their direction. Most reformers, who come in the name of economic salvation, are only participating with the main motivation of aggrandizement. Similarly, the world, especially the corporate world, faces a strenuous life majorly because people tend to judge things based on their negative perspectives rather than their positive attributes. This only negates the social responsibility that is bestowed upon every one by the social morals. In conclusion, it is important to mention the fact that organizations ought to get more serious about achieving their goals in order to maximize their profits. This is especially so because even in the modern corporate world, the critics do not discourage capitalism as a way of destroying it but rather as a means of curbing it. Although it is not the intention of critics to destroy capitalism, they have to take serious note of the fact that continued curbing of capitalism will actually lead to its destruction hence losing the very meaning of social responsibility in the corporate world. Indeed, social responsibility cuts across to include even the tendering process. This means that any organization that wants to maintain a high sense of professionalism ought to act with utmost restraint, and abide by all the available legislation. Overall, social responsibility plays a major role in the corporate world because it stands to benefit both the corporate world and the public. However, when mismanaged, social responsibility may only diminish the resources of the company and the community instead of doing the opposite. Therefore, it is incumbent upon all the capitalists to promote and defend corporate social responsibility in order to make the concept a success for the present and future generations. Reflections When it comes to matters pertaining to social responsibilities, I feel that the corporate world has to play a key role in its protection even in the face of a strong opposition against the concept. Nonetheless, it is important that there are certain critical dangers of social responsibility particularly if the motive is not well established. Additionally, I feel the society has to help promote social responsibility to guard against a situation of a monolithic society that is overwhelmed with social burdens. I strongly believe that it will only mean that power will be devolved at all levels in order to prevent the government from participating in all the circles of social responsibility. Perhaps the ultimate factor in the improvement and development of the corporate world is in my view, to ensure that all the tenders are awarded based on merit rather than favoritism. Mining and Corporate Social Responsibility: Newmont Mining Corporation Relevant Stakeholders Mining is indeed a major investment in any country and therefore all the necessary steps and policies need to be in place in order to get the most from the industry. In the case study, a number of stakeholders appear relevant by the kinds of activities that they do and the level of participation and responsibility on their side. In this regard, it is important to mention that Newmont Mining Corporation plays a major role in the development of the economy of Peru. Although it is difficult to carry out any mining activities without causing harm to the environment, it is clear that Newmont Mining Company has undertaken a number of measures to curb the same including participating in corporate social responsibility. Among the CSR programs that the company has undertaken include helping the immediate community through local employment, human rights, health, education, transparency, and accountability. Secondly, there is the Yanacocha Gold Mine that operates in Cajamarca, Peru. Since this company is believed to be the biggest gold mine in the world, it is important to emphasize the fact that the company had to evict over 26 families forcefully at the time of its launch. This led to a situation of ethical dilemma where the company was caught between the urge for expansion, socio-economic, and environmental concerns. Additionally, Yanacocha Gold mine, which is a major subsidiary of Newmont Mining Company, had to meet such basic needs such as health and safety, natural ecosystems, water resources and quality. This was to ensure that the company operates under maximum adherent to the relevant policies and regulations. Perhaps it is important to mention that the tow companies work under a single management in the mining industry in order to achieve maximum profits without compromising the welfare of the third stakeholder, which is the public. Indeed, the public ply a significant role in the mining industry especially if they are the inhabitants of the area where the mining activities take place. This is especially so because any mining activity has a significant influence on the environment even if all the regulations are followed to the latter. Consequently, a number of ethical issues arise in any mining area particularly when the activities of mining lead to an accident that affects the third stakeholder, who is the public. Key Ethical Issues within the Case In the article, a number of ethical issues arise particularly when it comes to the two mining companies that operate in residential areas. In essence, the major ethical issue affecting both Newmont Mining Corporation and Yanacocha Gold Mine is environmental degradation. When mining necessitates excavation or drilling of tunnels some areas are bound to be rendered derelict depending on the extent of exploitation of that particular mineral. After mining in one particular area for a long time, the mineral deposits are depleted and for this reason, the mining companies have to shift to new grounds, leaving the old site as a derelict. This situation poses great danger to the environment and the immediate community, as it could have significant impact on their livelihoods and environment. For a long time, environmental degradation has been a key topic in major world environmental forums especially considering the contribution of mining to the issue. Therefore, the managements of the two companies find it hard to compromise between making profits and protecting the environment. If one of the options is sacrificed for the other, then one party will lose, which is a scenario that the two companies are keenly meditating. Since it is immutable that no company can carry out mining activities without actually interfering with the environment, it is worthy to note that Newmont mining company has placed and adhered to stringent environmental regulations that help lessen the harmful effects of mining. Perhaps a rather embarrassing case of ethical dilemma is in the event of an accident that occurs primarily due to the activities of a mining company. A good example is the June 2000 Newmont’s disaster when a truck transporting mercury leaked 151 kg of the product in a residential neighborhood hence endangering the lives of the residents. This of course happened at a time when the company had major critiques who found a new topic to delve in. even as 1000 people fell ill due to poisoning by mercury, the company had a rough time balancing between restoring its reputation, compensating the victims of the disaster, and managing the disapprovals from the rivals critics. Perhaps this was the greatest ethical issue in terms of significance that Newmont mining Corporation had to deal with since its inception. Ethical Traditions Contributing to Conflict Undoubtedly, the issue of the social license plays out when it come to the extent of professionalism to which Newmont is operating. This is particularly so because these operating standards neither met the Peruvian nor the U.S. mining standards. This ethical perspective meant that the company stood a huge chance of disapproval from the two nations hence being kicked out of business. Additionally, the company’s history of industrial accidents put in in an awkward position in the sense that it was facing serious criminal proceedings, as there was clear evidence that most of the accidents occurred due to negligence. While the company faced financial constraints in terms of meeting the full compensation of USD 40 in order to receive the government license, the company management insisted that social license was more important than the government license. In this regard, the management of Newmont Mining Corporation embarked on a massive campaign to win back the trust of the public in order to maintain the ethical bond between the company and the vast neighborhood and beyond. Recommendations With all the hullaballoo that surrounds the mining industry, I feel that it is high time that all the stakeholders in the mining industry take individual responsibility for their actions particularly when it comes to environmental protection and safety measures. In order to be able to attain this, I strongly suggest that mining companies such as Newmont Mining Company should be issued with fresh licenses based on their suitability to continue operating in the industry. This will perhaps prevent further industrial accidents as occupational and safety procedures will be observed. Besides, high regards to environment will promote social responsibility of the company hence elevating its social and ethical status. Although ethical dilemmas are always present in any manufacturing environment and mining industry for that matter, corporates ought to make ethical decisions whenever faced with challenges that are of ethical nature. Otherwise, mining is a very profitable industry that should be exploited with caution in order not to deplete all the resources that we have. Read More