HISTORICAL PHASES OF ATTITUDES OF MANAGERS TOWARD SOCIAL RESPONSIBILITY
PHASE 1 PHASE 2
PROFIT-MAXIMIZING
ATTITUDES MANAGEMENT
(1800 to 1920s)
Orientation Raw self interest
Economic values Whats good for me is good for
my country.
Profit maximizer
Money and wealth are most
important.
Let the buyer beware (caveat
emptor)
Labor is a commodity to be
bought and to be sold.
Accountability Accountability of management
is to the owners.
Technological values Technology is very important.
PHASE 3
TRUSTEESHIP
MANAGEMENT
(late 1920s to early 1960s)
1.Self interest
2.Contributors interest
Whats good for organizations
and management is good for
our country.
Profit satisfier
Money is important, but so are
people.
Let us not cheat the customer.
Labor has certain rights which
must be recognized.
Accountability of management
is to the owners, customers,
employees, and other
contributors.
Technology is important but so
QUALITY-OF-LIFE
MANAGEMENT
(late 1960s to present)
1.Enlightened self interest
2.Contributors interest
3.Societys interest
What is good for society is
good for our company.
Profit is necessary , but..
People are more important than
money.
Let the seller beware (caveat
venditor)
Employee dignity has to be
satisfied.
Accountability of management
is to the owners, contributors,
and society.
People are more important than

Social values Employee personal problems
must be left at home.
I am a rugged individualist, and
I will manage my business as I
please.
Minority group are inferior to
whites. They must be treated
accordingly.
Political values That government is best which
governs least.
Environmental values The natural environment
controls the destiny of people.
Aesthetic values Aesthetic values? What are
they?
are people. technology.
We recognized that employees We hire the whole person.
have needs beyond their
economic needs.
I am an individualist, but I Group participation is
recognize the value of group fundamental to our success.
participation.
Minority groups have their Minority group members are
place in society, and their place people, as you and I are.
is inferior to mine.
Government is a necessary evil. Business and government must
cooperate to solve societys
problem.
People can control and We must preserve the
manipulate the environment. environment in order to lead
quality lives.
Aesthetic values are okay, but We must preserve our aesthetic
not for us. values, and we will do our part.