The Conscience of Companies Today

Organizational or corporate social province refers to the obligation of a communication channel firm to seek actions that protect and improve the welfare of night club along with its own interests. Corporate social responsibility often challenges businesses to be accountable for the consequences of their actions affecting the firms stakeholders while they pursue traditional economic goals. The ecumenical public expects business to be socially responsible, and m whatever companies founder responded by making social goals a part of their overall business operations (Hay, 1989). This paper go forth discuss four companies that have a conscience towards our todays society, and answered to create a go community for all of us, they are Johnson & Johnson, American address & Telegraph (AT&T), Herman Miller, and Procter & Gamble.A crisis confronted Johnson & Johnson in the fall of 1982, when seven moolah area residents died after taking Extra-Strength acetaminophen capsules contamin ated with cyanide. Not wholly was $400-million-per-year acetaminophen the best-selling U.S. drug, but it was a product that symbolized the Johnson & Johnson re arrangeation for quality, gentleness, and ticket health care (Kreitner, 1990).Despite the pressures of dealing with national media guaranteeage, J&J executive immediately opened their doors to the press and took great pains to backing the public informed about the berth. It soon became apparent that the cyanide had been put into the capsules after they had left J&Js factories, and the problem seemed to be confined to the bread area. Nevertheless, Tylenol sales sank to 20 portion of their previous level, and an opinion canvass showed that 61 percent of Tylenol users intended to stop using the product.A major question that arose was what to do about the 31 million bottles of Extra-Strength Tylenol on drugstore shelves throughout the country. The FBI and Food and Drug Administration counsel J&J managers not to take any drastic action. plane so, the managers promptly took the unprecedented step of recalling the unsold bottles, at a damage to the form of $100 million (Fortune, 1987). A few weeks later they firm to reintroduce Tylenol capsules in a triple-sealed, tamper-resistant package. In the months following the cataclysm, the community established a consumer hot line and continued extensive cooperation with media. It in like manner made a widely advertised refund offer to consumers for any pre-crisis capsules they still had, and its chairman, James E. Burke, appeared on the Donahue show. In an opinion poll interpreted 3 months after the tragedy, 93 percent of the public felt that J&J had d nonpareil a good job of handling its responsibilities.In considering these events, David R. Claire, J&Js president, said, Crisis planning did not see us through this tragedy nearly as much as the sound business solicitude philosophy that is embodied in out Credo. The Credos first opening strong belief is We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services. (Pearce & David, 1987) .Unfortunately, the importance of relying on the Credo was soon demonstrated again by another crisis. In early 1986, a 23-year-old woman died after taking a cyanide-laced Tylenol capsule. The ac attach to quickly offered to the replace capsules with caplets, tablets in the shape of capsules. The replacement apparent movement cost J&J $150 million. In addition, J&J announced that it would no longer offer Tylenol in capsules-another vaulting and costly move in keeping with its Credo.The actions of J&J in the two Tylenol incidents earned the company widespread praise. Among Fortunes 300 close to admired U.S. corporations, J&J was rated number one in 1987 on community and environmental responsibility. J&Js action in the Tylenol situation were unusually swift, decisive, and costly. In the mid-1990s, Tylenol rem ains one of the Americas most frequent and trusted tag names (Guzzardi, 1990). The product commands nearly one-third of the $3 billion brand name analgesic market. No other brand approaches have even 50 percent of Tylenols market share.American Telephone & Telegraph (AT&T) established goals for reducing air emissions, CFCs, solid redundancy, and hazardous waste in 1990. Under the direction of David R. Chittick, AT&Ts vice-president of environment and safety, the company has each(prenominal) surpassed its operations, AT&T invested $25 million to develop an array of election technologies (Business Week, 1987). One, called how solids spray fluxer, egests the need for CFC solvents to clean excess flux from electronic circuit broads. AT&T is now selling this technology to rough 25 other companies, among them IBM. AT&T even gives its ideas away at times, to help to create a better and safer environment for all. The company managed to eliminate virtually all its ozone-depleting sub stances a year and half before companys goal, and 2 years ahead of the worldwide ban.Now AT&T does not have to worry about the new U.S. law that requires companies to put inform labels on all goods that contain or are make with ozone-depleting substances. The company figures that the cost of tracking and labeling all the tiny components and switching systems that it once manufactured with CFCs would add up to hundreds of thousands of dollars. The early phase out also allow save AT&T $25 million annually.In addition, AT&T embraces total quality management (TQM) principles to solve the universal place pollution problem of too much paper. First, the company established a corporate paper reduction goal of 15 percent by 1995, then it created a corporate TQM team to figure out how to come upon it. The departments TQM teams suggested simple ways to decrease paper consumption, such as eliminating cover pages and using electronic rather than printed media. The department was consuming 22 percent less paper within a year.Today, AT&T is one of the companies that has the reputation of saving the world. Companys goes green not only create a better place for communities, but also helping the company to save on a lot of costs.Herman Miller, Inc., proves that financial success and a constant melody to be a better corporate citizen are complementary, not contradictory, goals (Griffin, 1993). The company has long been as well known for its participative management system as for its innovative contribution furniture designs (Woodruff, 1991). The company is doing everything it can to lessen its unfortunate effect on the environment. It recycles leather, vinyl, foam, office paper, telephone books, lubricating oil, and even old office furniture. When it found that recycling 800,000 Styrofoam cups every year was not practical, it banned the cups and reach out 5,000 mugs. Instead of dumping into landfills the 4,000 tons of scrap fabric that it produces each year, it now shi ps them to a North Carolina firm that shreds them and turns them into insulation for car-roof linings and dashboards.Since 1982, much of the junk that can not be recycled has fueled Millers waste-to-energy plant, which saves $750,000 a year in fuel and landfill costs and paid for itself in ten years, a disco biscuit ahead of schedule (Woodruff, 1991). Miller also recently spent $800,000 for two high-tech incinerators to burn the toxic solvents that escape during staining and varnishing. Millers environmental soul extends beyond local and national products. One of the companys best-known products, the $2, 277 Earnes chair, was always faultless with rosewood until the companys research manager realized that Herman Miller was contributing to the desolation of tropical rain forests. He consequently banned the use of rosewood and Honduran mahogany.Another test of Herman Millers humane attitude came when some of its employees undertake the acquired immune deficiency syndrome virus. When an AIDS victim in the companys Georgia plant intractable to let the rest of the workers know about his condition, his supervisor took charge, acting as what Herman Miller Chairman Max DePree calls a roving leader. The supervisor told two managers, and then the three of them quickly told everyone in the plant, ensuring that rumors did not pretend started. On the next workday after the announcement, the companys director of health and wellness flew down from Michigan to show a video on AIDS and answer questions. With a history of such sensitivity to its environment and its workers, it is no surprise that Herman Miller tops lists of most-conscientious and best-managed companies (Nelson-Horchler, 1991).Procter & Gamble is another company that has a conscience by helping the community. The 23rd Summer surpassing Games will be held in Los Angeles, in July and August. This will be the high register of years of hard work and training by many of Americas spring chicken athletes wh o are eager for an opportunity to make this country shine. But the U.S. majestic Committee, which is responsible for fielding the U.S. team, depends on the American people to support these gifted athletes. The U.S is the only major nation in the world whose Olympic athletes do not receive a continuing government subsidy. U.S competitors are back up solely by private donations.P&G has initiated several programs to help raise these funds, giving millions of Americans the chance to support this important cause (Cordtz, 1990). fin big separate coupon events, involving over thirty P&G brands, make up the companys Olympic promotions. They are designed to encourage consumer to bribe P&G brands and thus aid U.S. Olympic athletes. The company also sponsored a sweepstakes that helped to raise more funds. P&G Chairman of advance Owen B. Butler presented a check for $1 million, on behalf of the company to the U.S. Olympic Committee.P&Gs past experience has taught the company to expect such business success. For the past four years, P&G has sponsored similar promotions benefiting the Special Olympics, and internationalist sporting competition for mentally and physically handicapped children and adults. Business results have been very impressive. P&G helps itself by helping the communities.Four examples stated above say that corporate social responsibility does not needs lower profits but encourage firms to focus on long haul profits rather than short-run profits, and optimum profits rather than maximal profits (Post, Frederick, Lawrence, & Weber, 1996). Because of its obvious importance, organization proactively attempt to manage social responsibility (Van Fleet & Peterson, 1994). Moreover, the iron law of responsibility suggests that socially responsible demeanor may have a positive long-run effect on organizational success.