Does a corporation have to act selflessly to be considered socially responsible?

Answer:

Wheelen (2015) states that the principle of social responsibility, goes beyond just the shareholders and suggests that a private corporation has responsibilities that extend beyond just making a profit. Corporations are not legally held to selfless acts to be considered responsible, however, it is the top decision makers (CEO’s, Manager) that must realize this concept and implement it. For example, the CEO of United Airlines has recently resigned from his position due to a Federal Investigation which states that Jeff Smisek (fmr United CEO) made an agreement with the NJ and NYC Port Authority to restore money-losing flights to the weekend home of the authorities chairman, David Samson, in return for improvements to Newark Liberty National Airport where it is the airlines biggest carrier (MOUAWADSEPT, 2015). Smisek’s and Samson’s actions were not ethically or socially responsible. Who pays for these flights to the chairman’s weekend home? Shareholders? Or regular citizens buying airplane tickets and are forced to pay some erroneous tax to cover the flights? Major corporations will continue to act in this manner being that doing so will only result in a slap on the wrist and they will not have to be held accountable for their actions. Upon Smisek’s resignation, he will receive

$4.9 million in separation pay, and $60K in shares (MOUAWADSEPT, 2015).

MOUAWADSEPT, K. Z. (2015). United C.E.O. Is Out Amid Inquiry at Port Authority.

New York Times.

Wheelen, T. L. (2015). Concepts in Strategic Management and Business Policy. Upper Saddle River: Pearson.