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Graded Discussion Board No. 1
Topic: Social responsibility
Sunder Fertilizer Pvt Ltd. has decided to build a new manufacturing plant. For this, CEO of the Company assigns General Manager (GM) the task of preparing a proposal on this project. GM proposes that company can save about Rs. 5 million by not installing standard pollution control equipment which is the requirement by the Pakistan Environmental Protection Agency (Pak-EPA). Moreover, company can motivate employees by giving them incentives from the savings, if it does not install standard pollution control equipment. General Manager also proposes that the installation of standard pollution control equipment will create many employment opportunities for local workers. However, a research shows that pollutants from the factory could potentially damage the local fishing industry, but if the company builds the plant with pollution control equipment then it will be an expensive option for the company.
After viewing the GM proposal, CEO thinks that profit making is the sole responsibility of organization and the company should not install standard pollution control equipment. On the other hand, General Manager thinks that company should install new pollution control equipment because the social repercussions are far greater than the cost.
Points of discussion:
Keeping in mind the two opposing views of social responsibility; classical and socioeconomic view, what do you think who is right CEO or General Manager or both? Discuss with rationale.
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u say right
Two opposing views of social responsibility; classical and socioeconomic view, is that social responsibility is to maximize profit including protection and improvement society’s welfare. The General Manger is right if installation of standard pollution control equipment will create many employment opportunities for local workers and also he wants to protect local fishing industry from damaging by the pollutants of factory which is also in the interest of company’s Goodwill, and we cannot ignore environment at any cost. Ethical guidelines for managers are also to obey the law.
There are 10 major arguments for social responsibility, and they include the following:
Discouragement of further government regulation
Balance of responsibility and power
Possession of resources
Superiority of prevention over cures