Discretionary Responsibility

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Using your knowledge of the levels of corporate social responsibility, fill in the missing terms in the following image.Human Computer Interaction Discretionary Responsibility Contribute to the community; be a good corporate citizen. Responsibility Be ethical. Do what is right. Avoid harm. Legal Responsibility Obey the law. Responsibility Be profitable. Sources: Based on Archie B. Carroll, “A Three-Dimensional Conceptual Model of Corporate Performance,” Academy of Management Review 4 (1979): 499; A. B. Carroll, “The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Corporate Stakeholders, Business Horizons 34 Ouly-August 1991): 42; Mark S. Schwartz and Archie B. Carroll, “Corporate Social Responsibility: A Three-Domain Approach.” Business Ethics Quarterly 13, no. 4 (2003): 503-530. Read the case study and answer the questions that follow. CASE STUDY In a demonstration of how perception can sometimes trump reality, Johnson & Johnson topped a list of companies perceived by American consumers as having the best reputations for corporate social responsibility (CSR) practices. The Corporate Social Responsibility Index, developed by the Boston College Center for Corporate Citizenship and the Reputation Institute, attempts to measure how companies’ reputations are affected by public perceptions of performance related to citizenship (the community and the environment), governance (ethics and transparency), and workplace practices. The 2010 CSR Index is based on a survey of 7,790 online U.S. consumers conducted in January and February 2010 Johnson & Johnson has since admitted—months after the CSR Index survey was conducted-that it misled regulators and consumers by using Chapter 4 Assignment Johnson & Johnson has since admitted-months after the CSR Index survey was conducted-that it misled regulators and consumers by using company-paid contractors to buy defective Motrin painkiller products from store shelves rather than announce a recall. In testimony before a Congressional committee only two weeks ago, company CEO William Weldon said, “This was not one of our liner moments. The phantom recall” is reportedly the subject of a U.S. criminal investigation and at least one shareholder lawsuit. Used with permission of Business Ethics by NEW MOUNTAIN MEDIA LLC, from Johnson & Johnson, Under Investigation, Tops CSR Index, by Connor, M., copyright 2010; permission conveyed through Copyright Clearance Center, Inc. The fact that there is a criminal investigation pending against Johnson & Johnson suggests that regulators feel that the company is not meeting its obligations at level of corporate responsibility. The managers at Johnson & Johnson who authorized the buyback of defective products might have endorsed Milton Friedman’s shareholder, or profit- maximizing, view Which of the following arguments also support Friedman’s position? Check all that apply. People who put money into an organization deserve the maximum possible return on their investment. Organizations have the knowledge and resources to do good in the community, so they are responsible for helping others. People should be allowed to choose their charities for themselves. When organizations donate money to charity, the bottom line suffers. Organizations have more power than most underprivileged people, so they are responsible for helping those people not ahead in life

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