Welch Case Study
Welsh Case
This particular case discusses whether General Electric fulfilled its Corporate Social Responsibility under the leadership of Jack Welsh or if it just met basic obligations. It also displays the evolving idea of social responsibility in a corporation by contrasting the corporation’s actions during Welsh’s leadership and after Welsh retired. It is shown that Welsh had a classical economic view of social responsibility. General Electric followed a traditional business model while Welsh was working and a progressive business model after he retired. He used a cutthroat ranking system based off of social Darwinism in order to sort out the “best” of his employees. Lastly, it displays that norms and principles are always changing according to corporate social responsibility and that corporations should act in response to those changes.
1. I do not believe that GE in the Welch era fulfilled their duty of corporate social responsibility. They did not avoid harming the environment because they dumped toxins into the Hudson River. During the Welch era, GE did not make any efforts to enhance any societal assets; they only supplied the minimum of what they needed to create wealth for the company. They did not try to protect their employees or go beyond what is necessary. Many pressures, including the vitality curve evaluation system, were purely performance driven. Though job cuts are necessary for the survival for a business, it seemed like they treated their employees as a resource instead of human beings. For example, the GE Pension Fund could have provided retirees and their unions with more benefits but instead Welch wanted to leave the pension plan overfunded to benefit the corporation. He failed to attribute any credit to GE’s former employees for the company’s success. General Electric’s corporate social responsibility could have been done in a much better way. First, they could aim to prevent environmental damage caused by their
This particular case discusses whether General Electric fulfilled its Corporate Social Responsibility under the leadership of Jack Welsh or if it just met basic obligations. It also displays the evolving idea of social responsibility in a corporation by contrasting the corporation’s actions during Welsh’s leadership and after Welsh retired. It is shown that Welsh had a classical economic view of social responsibility. General Electric followed a traditional business model while Welsh was working and a progressive business model after he retired. He used a cutthroat ranking system based off of social Darwinism in order to sort out the “best” of his employees. Lastly, it displays that norms and principles are always changing according to corporate social responsibility and that corporations should act in response to those changes.
1. I do not believe that GE in the Welch era fulfilled their duty of corporate social responsibility. They did not avoid harming the environment because they dumped toxins into the Hudson River. During the Welch era, GE did not make any efforts to enhance any societal assets; they only supplied the minimum of what they needed to create wealth for the company. They did not try to protect their employees or go beyond what is necessary. Many pressures, including the vitality curve evaluation system, were purely performance driven. Though job cuts are necessary for the survival for a business, it seemed like they treated their employees as a resource instead of human beings. For example, the GE Pension Fund could have provided retirees and their unions with more benefits but instead Welch wanted to leave the pension plan overfunded to benefit the corporation. He failed to attribute any credit to GE’s former employees for the company’s success. General Electric’s corporate social responsibility could have been done in a much better way. First, they could aim to prevent environmental damage caused by their