As the scale and scope of business enterprise become larger, the phenomenon of soicaliztion is stimulated and the social responsibility for the business enterprise is widely expanded. On the other hand, it is likely that the separation of ownership a...
As the scale and scope of business enterprise become larger, the phenomenon of soicaliztion is stimulated and the social responsibility for the business enterprise is widely expanded. On the other hand, it is likely that the separation of ownership and management is conspicuous. In consequence, the professional managers as decision-makers of business enterprise come into existence in due course and are expected to accomplish their decision-making with their individuality.
If we examine the social responsibility of the managers through viewing the historical background, their genealogy is divided into three patterns as follows:
(1) First is the Classical Market Economy Model which is based on the system of free business enterprise. This theory holds that the efforts for Profit-seeking by business managers are controlled automatically toward the greatest economic or social welfare through their- interaction in market mechanism. This implies, therefore, the social responsibility of business firms can be performed through accomplishing the maximum efficiency for the pursuit of profit.
(2) Secondly, the Discretionary Management Model has its the Oligopoly or Monopoly phenomena of the present large-scale enterprise. In the Oligopoly or monopoly stage, the business enterprise possess the market Control or Market creativity and then the professional managers control the whole business enterprise seceding from the controllability of incompetent Stockholders. As a result, business management tends to suspend the business activities seeking after profit and puisue its own social responsibility discretionarilly beyond the realm of profit.
(3) And finally, the Social System Model looks upon business enterprise or management as an integrated part of social system rather than simple economic man or economic organization. This model maintains that the business managers can develope and create the various social relationship and social value itself through the interrelationship with the other part of social system, while fulfilling their own distinct social responsibility as social system.
The above- mentioned three patterns involve the respective characteristics and problems in them and, at the conclusion of this paper, the writer presents five derections for the establishment of social responsibility as the means of settling those problems.