Question

In your own words, describe the four social responsibility models and the roles of each. Share one example of a company displaying the complete social responsibility spectrum successfully. Why do you think so? (Productivism, Progressivisim, Philanthropy, and Ethical Idealism)

Answer 1

Productivism: The sole motive of productivists is to earn profits. They try use Corporate Social Responsibility for self interests and to fulfill stockholder interests. They adopt social responsibility with a view to get tax reduction and to obtain economic incentives. Initial response of George W. Bush to subprime lending crisis is an example of productivity approach.

Progressivism: Progressivists are motivated by both self interests and social change.They support policies such as employee stock option programs, environmental protection, energy conservation and affirmative action. Involvement of Church in politics and with unions to improve working conditions and wages of the workers is an example of progressivistic approach.

Philanthropy: Philanthropists believe that it is the moral duty of everyone to help the less advantaged people in the society. They too believe that an organization should make profits. However, their instincts are driven by moral duty and not by self interest. Bill and Melinda Gates foundation is an example of philanthropistic approach.

Ethical Idealism: Ethical idealists believe that social responsibility is justified when the behavior of corporates directly support stakeholder interests. For them, the boundaries between society and business are fluid.and that corporate profits are to shared for humanitarian purposes. Employee ownership and cooperatives are examples of ethical idealism.

Google is an example of a company displaying the complete spectrum of corporate social responsibility. Google's consistent reduction in energy consumption can be seen as a part of both productivity and progressivism approach. By reducing energy usage, the company is reducing its costs thereby leading to improved productivity. At the same time the company is being environmentally responsible by reducing its energy usage. Google's participation in many charitable endeavors (Ex: Google grants) shows its philanthropic approach. In addition, by providing indirect means of income for many people through blogging, you tube etc and by helping users in getting information on whatever they need, Google also fulfills the ethical idealistic approach.