What is the difference between Entine and Jennings’ eight questions and traditional measures of social responsibility?

            The measure of corporate social responsibility (CSR) can often be at odds with corporate responsibility to its stakeholders. Entine and Jennings eight questions are very good at measuring both social and corporate responsibility but ignore the fundamental responsibility to the stakeholders (Jennings, 2012, p. 104). Stakeholders invest in the corporations with expectation of receiving a return on that in vestment. A corporation that is charitable may gain social acclaim but they do so at the expense of the stakeholders return on investment (Friedman, 1970). Maintaining a large workforce when fewer workers are needed is good for the local economy but again, this is done at the expense of the stakeholders. Edward Freeman takes the concept of stakeholder to another level by including anyone who depends on the profitability of the company as a stakeholder including employees, suppliers and customers all of whom could suffer if the company does not profit and fails. This idea of expanding the concept of stakeholder further supports the social moral imperative for the company to make a profit (Jennings, 2012, p. 96-97). Complying with laws, producing good quality products that meet the expectations of the customer and treating the employees well, are good practices for both social and corporate responsibilities. Demonstrating a sense of propriety by doing the right thing when dealing with ethical issues when they arise with suppliers and customers. When the press or competition discloses negative information about the company the company management should be willing to present the information required to mitigate the damage done and defend the stakeholder’s interest. If the company has done something wrong, full disclosure will be better accepted than hiding the truth. A company demonstrating a proper sense of propriety and doing the right thing can hold true to traditional measures of social responsibility and ease the pressures felt by management while keeping the company profitable and fulfilling the obligations to all the stakeholders (Posner & Schmidt, 1993, p. 346).

References:

Jennings, M. M. (2012). Business Ethics: Case Studies and Selected Readings, (7th ed.).
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Posner, B. Z., & Schmidt, W. H. (1993). Values Congruence and Differences Between the Interplay of Personal and Organizational Value Systems. Journal of Business Ethics, 12(), 341-347. Retrieved from http://eds.b.ebscohost.com.proxy1.ncu.edu/eds/pdfviewer/pdfviewer?vid=2&sid=7ade403f-7e24-4e85-873a-710425638c1b%40sessionmgr114&hid=115