SOCIAL IMPACTS AND SOCIAL PROBLEMS

BOOK REFERRED: ESSENTIALS OF DRUCKER.

ROHIT TIWARI ROLL NO: 110 eMBA B

Author Peter Drucker

Peter Ferdinand Drucker

(November 19, 1909November 11, 2005) was an Austrian born American management consultant, educator, and author. His writings contributed to the philosophical and practical foundations of the modern business corporation. He was also a leader in the development of management education.

INTRODUCTION
Social responsibility - whether of a business, a

hospital ,or a university- may arise in two areas.

First deals with What an institution does to society.
Second is concerned with what an institution can do

for society.

 The modern organization exists to provide a

specific service to society.

EXAMPLE: The purpose of the hospital is not to

employ nurses and cooks. Its a patient care. But to fulfil this purpose , nurses and cooks are needed.

RESPONSIBILITY FOR IMPACTS

One is responsible for ones impacts, whether

they are intended or not. This is the first rule.

There is no doubt regarding managements

responsibility for the social impacts of its organization.. They are managements business.

 EXAMPLE: In late 1940s and early 1950s Ford

introduce cars with seat belts but sales dropped drastically. The company had to withdraw the cars with seat belts and abandoned the whole idea, when fifteen years later , the American driving public became safety -conscious, the car manufacturers were sharply attacked for their TOTAL LACK OF CONCERN WITH SAFETY.
First job of management is therefore to identify

and to anticipate impacts- coldly and realistically.

HOW TO DEAL WITH IMPACTS

Identifying incidental impacts of an institution is

the first step. But how does management deal with them?
The objective is clear: impacts on society and

economy, community, and individual that are not in themselves the purpose and mission of the institution should be kept to a minimum and should preferably be eliminated altogether.
EXAMPLE: Dow chemical , one of the leading

U.S. chemical companies has for almost 20 years tackled air and water pollution.

 Responsibilities for social impacts is a

management responsibility not because it is a social responsibility, but because its a business responsibility.
Ideal is to make elimination of such an impact into

a business opportunity.

SOCIAL PROBLEMS AS BUSINESS OPPORTUNITIES

Social problems are dysfunction of society and- at

least potentially- degenerative diseases of the body politic.

It is the job of business to convert change into

innovation that is into new business.

Most significantly opportunities for converting social

problems into business opportunities may therefore not lie in new technologies, new products, and new services.
They may lie in solving the social problem, that is in

social innovation, which directly and indirectly benefits and strengthen the company or industry.

LIMITS OF AUTHORITY
The most important limitation of social

responsibility is the limitation of authority.

Authority and Responsibility are different sides of

the same coins.

To assume social Responsibility therefore always

means to claim authority.

THE ETHICS OF RESPONSIBILITY

The problem is one of moral values and moral

education, of the individual, of the family of the school. But neither is there a separate ethics of business, nor is one needed.
A problem of ethics that is peculiar to the

manager arises from the managers of institutions being collectively the leadership groups of the society of organizations. But individually a manager is just another fellow employee.

CONCLUSION
Management has to identify issue and problem in

the organization and come up with innovation ideas to make profit.

THANK YOU