Social Responsibility

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Social Responsibility

• Reginald Davis
• Jenny Raulerson
• Janelle Rodriguez
• Jennifer Rosario
• Aimee Weiner

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Social Responsibility

• Social Responsibility
• Ethics
• Values
• Corporate Social Responsibilities
• Proponents
• Opponents
• Corporate Social Responsiveness

3
Stakeholders

• Shareholders
• Employees
• Customers
• Suppliers
• Government
• Society as a whole

4
Shareholders

• Who
• Owners and primary investors
• Expectations
• Interests to be fully protected by corporate
  management
• Goal
• Profit maximization

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Ford vs. Dodge

• Plaintiffs
• Dodge Brothers, minority stockholders, 1/10
  shares
• 1919 Lawsuit
• 1915 special dividends ceased
• 5 per month regular dividend
• Court Decision
• Larger dividend ordered
• Lasting Effects
• No longer a public company
• New competition

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Employees

• Compensation Benefits
• Privacy
• Work Conditions
• Henry Ford a trend Setter
• 8hr work day
• 5 minimum wage

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Customers

• Ultimate duty to consumer
• Pricing
• Advertising
• Product Quality

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Ford Pinto

• Competition
• Design and Product testing
• Crash impact
• Gas leak
• Charts
• Human Life Value
• Cost Benefit

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Human Life Value Chart
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Cost Benefits
BENEFITS Savings 180 burn deaths, 180 serious
burn injuries, 2,100 burned vehicles. Unit Cost
200,000 per death, 67,000 per injury, 700 per
vehicle. Total Benefit 180 X (200,000) 180 X
(67,000) 2,100 X (700) 49.5 million.
COSTS Sales 11 million cars, 1.5 million light
trucks. Unit Cost 11 per car, 11 per
truck. Total Cost 11,000,000 X (11)
1,500,000 X (11) 137 million.
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Suppliers

• Dependent for parts and materials
• Quality control

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Ford Firestone

• Firestone ATX Wilderness AT recall
• August 9, 2000
• 14 million tires
• Ford
• Claims
• Vehicles effected
• Bridgestone-Firestone
• Claims
• Hidden defects

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Ford Firestone

• Investigation
• Internal
• Surveys
• NHTSA
• Investigation
• Technical Complexity
• Field reviews
• laboratory analyses
• Defects Found
• Design Related

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SUV with ATX Tires
The insurance claimed totaled more than 50,000
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Government

• Conformity to statutes and regulations
• Legal reform

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Society as a Whole

• Environmental concerns
• Safety issues
• Charitable contributions

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Contributions 1999-2001
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In Review

• Social Responsibility
• Every businesss obligation to all involved
  stakeholders.

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Questions
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Works Cited

• http//news.bbc.co.uk
• http//www.bridgestone-firestone.com
• http//www.firestonetire-facts.com
• http//www.firestone-tire-recall.com
• http//www.ford.com
• http//www.nhtsa.dot.gov/hot/firestone/index.html
• http//www.washingtonpost.com

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Works Cited

• Business, Government,and Society A Management
  Perspective, 9th ed. George Steiner and John
  Steiner Mcgraw-Hill, 2000, pg.120
• Business Ethics, Concepts and Cases, 3rd ed.
  Manuel Velasquez Prentice-Hall, Inc. 1992 pgs.
  110-114
• The Legal,Ethical, and International Environment
  of Business, 4th ed. Herbert M Bohlman and Mary
  Jane Dundas West Educational Publishing, 1999
  pgs. 33-43