What Drucker Taught us About Social Responsibility

Questions: 1. Interpret Cohens beliefs regarding the social responsibility of a business to its workers, stakeholders, and society as a whole. 2. Explain how does this perspective aligns with that of Drucker. 3. Compare Cohens opinion to Friedmans opinion. Answers: Interpretation of Cohens beliefs regarding the social responsibility of a business to its workers, stakeholders, and society as a whole. In the early days, social issues were widely regarded as issues that were considered to be governments responsibility. In accordance to Cohen, the professionals who are in charge of the administrative positions in the various organizations should take these sorts of social responsibilities for the common good of the individual as well as the organization (Cohen, 2009). Cohen was of the opinion that for an organization to run properly, its stakeholders should get proper dividends as well as its workers and managers should get their salaries in time. The concept of social responsibility of can is elaborated as responsibilities of an organization to enhance, protect and promote the well-being and welfare of its employees and the society as a whole. In accordance with Cohen's beliefs, it can be stated that an organization should be socially responsible for its workers as well as stakeholders for several reasons. Firstly, it is the ethical thing to do according to Cohen. Secondly, workers and the society would benefit vastly as a result of this sort of an approach from and organization and it would thereby enhance the quality of life in the society as a whole. Lastly, the business organization would also benefit vastly from this approach as keeping the stakeholders and employees satisfied, would increase the productivity and the profit margins of the organization. This is the interpretation of Cohen's beliefs with reference to social responsibility towards workers and stakeholders, by a business firm (HINRICHS, WANG, HINRICHS, ROMERO, 2012). Explanation of the alignment of the above stated perspective with that of Drucker. Druckers theory also reveals the fact that his perspective and Cohens perspective are somewhat aligned in some instances. It can be further observed their opinions are compatible in regarding the concept of social responsibility of an organization towards its workers, stakeholders, and society as a whole. Drucker's principle perspective was the fact that a worker's well-being in and out of the workplace is the social responsibility of a corporate leader, along with looking for the profitability, growth, and welfare of the business organization (Cohen, 2013). But, keeping in mind that the fundamental concept of Druckers and Cohens perspectives are aligned, it should also be pointed out that Druckers perspective had some significant differences despite sharing same principles with Cohen regarding social responsibility. Firstly, in accordance to Drucker, the Government could not successfully implement social programs and in turn, could not possibly solve any social problems. Secondly, a lthough Drucker believed in an organization having a social responsibility towards its workers but he was of the opinion that corporate mission comes first, and it is the fundamental responsibility of the organization to cover operational costs and make profits, regardless of any other factors (Drucker de Wolf, 2011). Drucker also believed that there exists unique ethics of social responsibilities and there could not possibly exist a single solution for all contingencies. From this explanation, the alignment of Druckers perspective with that of above stated Cohens perspective is clarified. Comparison between Cohens and Friedmans opinion. There exist certain differences in Cohens and Friedmans opinions when it comes to the concept of social responsibility. Differing with Cohen, Friedman was of the opinion that the successful business firms in the modern day society have to play specific roles within the organization. Friedman analyzed the company as an economic institution and believed in the concept that an organization should act and specialize within an economic sphere (Salb, Friedman, Friedman, 2011). Friedman believed that profitability of the organization is its fundamental priority and it has no other responsibilities. But, on the contrary, Cohen was of the opinion that a business organization must seek profits but along with that, it should also be socially responsible towards its workers as well as stakeholders. If further comparisons are drawn between the two perspectives, it can further be witnessed that Friedman believed social responsibility for workers and stakeholders could not be achieved by the busin ess organization without neglecting the primary goal which is the maximization of profit, but Cohen believed otherwise (Friedman, 1984). References Cohen, W. (2009). What Drucker taught us about social responsibility.Leader To Leader,2009(51), 29-34. https://dx.doi.org/10.1002/ltl.315 Cohen, W. (2013). Peter Drucker Wants You to Be a Heroic Leader Now. Organizational Dynamics, 42(1), 70-80. https://dx.doi.org/10.1016/j.orgdyn.2012.12.009 Drucker, A. de Wolf, R. (2011). Theory Of Computing, 1(1), 1-54. https://dx.doi.org/10.4086/toc.gs.2011.002 Friedman, G. (1984). Book Reviews. Business History, 26(3), 361-363. https://dx.doi.org/10.1080/000767918400000017 HINRICHS, K., WANG, L., HINRICHS, A., ROMERO, E. (2012). Moral Disengagement Through Displacement of Responsibility: The Role of Leadership Beliefs. Journal Of Applied Social Psychology, 42(1), 62-80. https://dx.doi.org/10.1111/j.1559-1816.2011.00869.x Salb, D., Friedman, H., Friedman, L. (2011). The Role of Information Technology in Fulfilling the Promise of Corporate Social Responsibility. CIS, 4(4). https://dx.doi.org/10.5539/cis.v4n4p2