Question

what will happen when a social objectives conflicts with the organizations economic objectives

Answer 1

The answer depends on the organizations vision and mission statements.

The vision statement describes the purpose of the organization and its intention, describing what it wants to be. The mission statement documents the reason for the organization's existence, its overall goal and the values it imbibes. Therefore, the mission statement extends support to the vision statement.

If, in both the mission and vision statements, the organization proclaims to be the harbinger and ambassador of social issues as its primary target, in that case, conflict between social and economic objectives will make the organization put the social objectives above the economic objectives, provided its management is in conformance to abiding by the mission and vision statements. But if the organization puts less emphasis on social objectives and more emphasis on shareholder returns in terms of economic objectives, then such a conflict will will make the organization put the economic objectives above the social objectives.