1979 Zenisek 1
1979 Zenisek 1
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Social comment, a leading indicator of evolving see it as a mere synonym for "legitimacy";a few see
social values or expectations, has borrowed heavily it as a sort of fiduciary duty. Even the antonyms,
in recent years from that portion of the advertising socially "irresponsible" and "nonresponsible,"
industry specializing in the promotion of laundry have multiple interpretations (29, pp. 11-13).
detergents. Both contents and their efficacy are Whatever the interpretation, the term has re-
usually underanalyzed, and oversold. Like the ceived a great deal of attention during the past few
brand names of the best-selling detergents, the years. Corporation presidents rarely make public
labels affixed to social issues are often chosen as statements without giving it prominence. The edi-
much to titillate as to inform (29). tors of business periodicals devote whole issues to
One of the issues in the area of business and it and every new oil spill brings it to the frontpages of
organization which is presently in this stage of de- newspapers. It has become the title of college
velopment carries the label "corporate social re- courses and purports to be a proper subject for
sponsibility." The term means something, but not scholarly research. With few exceptions, however,
always the same thing, to just about everyone. To the literature contains little that might truly be de-
some it conveys the idea of legal responsibility or scribed as analysis. Peter Drucker (7) has stated
liability; to others it means socially responsible be- that, the time for sensations and manifestos is
havior in an ethical sense; to still others the mean- about over; now we need rigorous analysis, united
ing transmitted is that of "responsible for" in a effort, and hard work.
causal mode; many simply equate it with "charita- It is easy to say that the time has come to get
ble contributions"; many of those who embrace it down to work; it is not at all easy to say where we
ought to begin. However, there should be no major
1The authoracknowledgesthe commentsand suggestions of disagreement over the desirability of obtaining a
Dr.Julie Rowney. clearer idea of what it is we intend to observe by
? 1979 by the Academyof Management 0363-7425
359
Traditional Metro
Corporation Corporation
Directionof Directionof
Minimum Maximum
Responsibility Responsibility
Figure 1
Eells' Continuum of Social Responsibility
At one extreme of the continuum is the traditional The traditional corporation is concerned only with
corporation which is backed by the position that the the "economic man"; but the metro corporation
corporation is nothing but the organizational arm of thinks of the "whole man" in much the same way as
its stockholders as private property owners. Profit the all-embracing political community is parens pat-
maximization for the owners is the sole legitimate riae and the guardian of the welfare of citizens.
function of corporate enterprise in this theory. At the Walton (30) expanded and clarified much of
other extreme is the model of the social corporation Eells' (8) work. He expanded Eells' continuum con-
with a wide range of social purposes and objectives. cept to include six models of social responsibility:
Itis a kind of "metro corporation" (a mother corpora- (a) austere, (b) household, (c) vendor, (d) invest-
tion) with a host of interest groups under its protec- ment, (e) civic, and (f) artistic. Walton's austere
tion. Its professional managers maintain a balance model is essentially equal to Eells' traditional cor-
of interest among competing claimants; but more poration, while his civic model represents Eells'
than this, they become "socially responsible" for metro corporation. These six models are shown in
the welfare of these claimants in numerous ways. Figure 2.
360
Figure 2
Walton's Continuumof Social Responsibility
Walton's division of the continuum of social re- Chamberlain's definition and Frederick's more
sponsibility into these six models, though a great recent one reveal two differences of meaning. They
conceptual step forward at the time of its creation, is are (a) in terms of the recipient (prime beneficiary)
lacking as a basis for empirical investigation. This to whom responsibility is due and (b) in terms of
stems from the fact that the six models merely de- what initiative triggers corporate action. In addition,
scribe, in time sequence, clustered bodies of Frederick's definition involves a point of view
thought which seek to rationalize observed orga- toward society that suggests more initiative on the
nizational behaviors. The models are based on ab- part of business leadership. It suggests proaction
stract rationalizations for behavior rather than and is thus in tune with Walton's (30) artistic model.
actual organizational behaviors. Proactive types of definitions have been elabo-
rated on more recently by several authors (3, 4, 21)
Definitions of Social Responsibility - most notably by Sethi (21) under the banner of
Over two decades ago, Neil Chamberlain (6) de- social responsiveness. He has presented a three-
fined social responsibility in terms of action that the state schema for classifying corporate behavior. In
leadership in business and unions are expected to this schema (a) "state one" behaviors are called
take with respect to their following in a given situa- "social obligation" and are depicted as being pro-
tion (actions that can be and are demanded) as scriptive in nature; (b) "state two" behaviors are
matters of right, whether legal or nonlegal. Because called "social responsibility" and are depicted as
it is a response mechanism, social responsibility being prescriptive in nature. Both "state one" and
"can be satisfied only by performance of obligations "state two" types of behavior are conceptualized as
to particular individuals, and not to society as a response mechanisms; and (c) "state three" beha-
whole" (6, p. 13). Against the response notion and viors are called "social responsiveness" and are
against the particularistic feature of Chamberlain's depicted as being anticipatory and preventive -
definition is the view expressed by William Freder- proaction mechanisms. However, proactive defini-
ick. He sees in social responsibility a requirement tions contain an "ought" element that critics find
for business to: infuriating. Milton Friedman (11) and Theodore
Levitt (17) resent being put in a "bind"that, seem-
Oversee the operationof an economic system that
fulfills the expectations of the public. And this ingly, forces them into an antiresponsibility role.
means, inturn,thatthe means of productionshould Philip Klein (15) seeks to explain the meaning of
be employed in such a way that productionand social responsibility as it relates to internal and ex-
distributionwould enhance total socio-economic ternal organizational problems, respectively. In-
welfare. Social responsibility... is a willingnessto cluded in the internal problems are stockholder and
see that those (human and economic) resources
are utilizedforbroadsocial ends and notsimplythe worker rights. Under the external problems are re-
narrowlycircumscribedinterestof privatepersons sponsibilities dealing with the impact of the product
and firms(10, p. 60). or service on the community, the relationship of the
361
Societal demands/ expecta- Sherman Act 1870 Workmen's Compensation 1938 Wheeler-Lea 1938 Water Pollution
tations (represented by laws Clayton Act 1914 Wool Labelling 1939 Control 1961
enacted)--representative, Income Tax - Taft Hartley 1947 Clean Air 1963
not inclusive (corporate) 1917 F A. A. Civil Rights 1965
Blue Eagle 1925 C. A. B. Air Quality 1967
Morris-LaGuardia 1932 F D. A. . S. H. A. 1970
Wagner Act H. E. W. Environmental
Wage Hour Law 1936 Flour Products 1951 Quality 1970
Social Security 1941 Flammable Products 1953 E. P. A. 1970
O. P A. 1940-45 Textile Fiber 1958 Amendment to Civil
Rights 1972
Landrum Griffin 1959 No Discrimination
I. C. C. in Age
Equal Pay
Social milieu Industrial era; days of Rise of unionism, people are "Marketing concept;" a Pressure to internalize eco-
"robber barons" and more than a "factor of pro- firm can no longer sell all nomic and social exter-
muckrakers; gospel of duction" that it can produce nalities
wealth; social Darwinism
Environmental type (approx- Placid randomized (e.g., Placid clustered (e.g., imper- Disturbed-reactive (e.g., Turbulent field (no economic
imately those of Emery and classic market) fect competition) oligopoly) concept as yet; however,
Trist) symptoms are present, e.g.,
"stagflation")
Figure 3
A Four-Celled Model (Partition)of the Social Responsibility Continuum
As personified by societal demands/expectations of private enterprise (surrogate objective measures are the laws affecting private
enterprise during the historical period).
Emery and Trist (9) and Terreberry (25) have ment which existed in phases I, II, and IIIof the
pointed out that the economic concepts of classical model. In addition Terreberry has developed a con-
market, imperfect competition, and oligopoly are vincing argument, based on over 25 theoretical and
respectively examples of placid random, placid empirical works, that the extant environments of
clustered, and disturbed reactive environments. large organizations are represented by turbulent
These three economic concepts are seen to be fields. This set of relations is shown in the sixth row
respectively representative of the market environ- of Figure 3.
365
A BUSINESSETHIC
Degree of congruence?
(Petit'smanagerialmoralcrisis)
/
Degree of congruence? Degree of congruence?
(second dimension of -- B A - (first dimension of
social responsibility) social responsibility)
SOCIETALDEMANDS/EXPECTATIONS
Figure 4
Points of InteractionIndicated by the
Social Responsibility Model
366
REFERENCES
1. Adizes, I., and J. F. Weston."ComparativeModelsof Social 3. Bauer, R. A. "The CorporateSocial Audit:Gettingon the
Responsibility,"Academyof ManagementJournal,Vol.16, LearningCurve,"CaliforniaManagementReview, Vol. 16,
No. 1 (1973), pp. 112-127. No. 1 (1973), pp. 5-10.
2. Bailey, K. D. "Monotheticand PolytheticTypologies and 4. Bauer, R. A., and D. H. Fenn. "Whatis a CorporateSocial
theirRelationto Conceptualization,"AmericanSociological Audit?,"HarvardBusiness Review, Vol. 51, No. 1 (1973),
Review, Vol.38, No. 1 (1973), pp. 18-33. pp. 37-48.
367
368