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Student : Nguyen Thi Phuong ID : 217146 Class : HAM #23 Professor : Bari Courts
Nguyen Thi Phuong ID 217146 STRATEGIC MANAGEMENT AND BUSINESS POLICY - HAM#23-CITC
Content
1. Summary of Milton Friedman's theory 2. Summary of Archie Carroll's theory 3. Principles implemented CSR theories at current my work. 4. Examples of organizations where Friedman's theories are applied. 5. Examples of organizations where Carroll's theories are applied. References
Nguyen Thi Phuong ID 217146 STRATEGIC MANAGEMENT AND BUSINESS POLICY - HAM#23-CITC
"There is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud. -Milton Friedman- US economist (1912-2006)
Nguyen Thi Phuong ID 217146 MANAGING INFORMATION TECHNOLOGY - HAM#23-CITC
(Might Do)
Economic
(Must Do)
Ethical
(Should Do)
(b) Legal
Defined by governments in laws that management is expected to obey
(d) Discretionary
Purely voluntary obligations a firm assumes
Philanthropic contributions, training hard-core unemployed, providing day-care centers, etc. Many people do not expect firms to do these things
Vedan CSR
Reasons behind Vedan deeds are to cut down the cost of waste-processing Sewage treatment is the process of removing contaminants from wastewater. It includes physical, chemical, and biological processes to remove physical, chemical and biological contaminants. It can be seen that the industrial wastewater treatment process is very complicated and requires high cost which is estimated about 31 million USD
Vedan CSR
The consequences
- suspended the plants wastewater discharge license - fined the company 127 billion VND - have to pay the cost of restoring the river, - have to construct a sewage treatment system in order to minimize the environment pollution. - Decline in revenue: Vedans operations were interrupted for a time. - People do not trust Vedan as before, some grocery stores and markets even boycotted all Vedan products. - Significant fall in both Vedan revenue and reputation.
References
Stanwick, P. A., & Stanwick, S. D. (2009). Understanding business ethics. Upper Saddle River, NJ: Prentice Hall. www.macrothink.org/journal/.../1604 www.benjerry.com/ vedan.com.vn/vedan/index.php?q=node/242 http://www.ehow.com/how_8348464_comm unicate-stakeholders-business.html