Social Responsability
Social Responsibility is a “business’ obligation to pursue policies, make decisions, and take actions that benefit society”. Under the umbrella of social responsibility there are two models for social responsibility; the shareholder model, and the stakeholder model. Basically, The shareholder model Focus’ on maximizing profit for its shareholder’s. When a company makes profit and meet their production goals they in turn benefit the community. This is made possible through job creation and tax money paid throughout production, sales, and individual taxes for the employee just to name a few. The stakeholder model includes the owners, the customers, the suppliers, the community, and the Government. The stakeholder model is when the business thoughtfully makes decisions giving intentional thought to how the individual groups will be affected. The main difference that stands out is that the shareholder model is indirect, and the stakeholder model is intentionally planned out. Of the two models presented, the most beneficial to society is the stakeholder model. This is due to careful planning out the cause and effect of the business’ decisions and how they will impact the stakeholders. Nike is a large multinational sports apparel company. Nike headquarters are in Beaverton, Oregon and they are the leading sports apparel company in the world. Nike had some bad press in the ninety’s when they were accused of operating Vietnamese sweat shops. Nike’s corporate website www.Nikeinc.com states that “Nike has been working towards better work conditions for fifteen years”. In the past Nike achieved its social responsibility in a much more indirect way than their current business model. Due to the billions of dollars made and thousands of jobs globally; Nike most definantly pleased the company shareholders and uncle Sam. In more recent years Nike has transformed itself to support countless charities and have developed concerns about topics other than the bottom line. One