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– 76 –
racial discrimination and at all times to behave with integrity. The list
is endless.
An example of the new approach can be found in banking. Some
well-known British banks have had pressure put on them to stop
doing business in South Africa. This is because many of their customers
are opposed to South Africa’s policy of Apartheid. For example, in
1986 Barclays Bank withdrew its business from South Africa. Similarly,
a few years ago, some Swedish companies were criticised for taking
part in an electrical power project in Africa. The project was located in
a country which was then a Portuguese colony. Some Swedish newspapers
accused the companies of ‘supporting Imperialism’.
The new concept of social responsibility means that businesses and
business people must have integrity. They must deal honestly with their
employees, and with the outside world. As Sir John Clark of the Plessey
company says, ‘I attach more importance to integrity than to ability.’
Successful companies are very sensitive if their integrity is attacked.
They usually respond sharply. Some time ago, an English health
inspector found fault with the standards of hygiene in a Trusthouse
Forte hotel. Lord Forte was most upset by the inspector’s accusations.
Making no attempt to plead guilty and by so doing avoid publicity,
the Trusthouse Forte Group fought the case in the courts. It also
advertised in several national newspapers to give its side of the case.
The integrity of the shoe-making firm, Clark’s, was recently
questioned. To make its shoes, Clark’s were using leather cured by
sperm-whale oil. Conservation groups heard about this and put pressure
on the company to stop using such leather. They even talked of
boycotting the company’s shoes. At first, Clark’s said that it had no
control over leather provided by its suppliers. However, a little later,
the Chairman Daniel Clark gave a direct order that the company
should only buy leather cured without sperm whale oil. He also invested
in testing equipment to ensure that supplies of leather were free from
this type of oil.
A lot of business people agree with the ‘wider’ concept of social
responsibility. They accept that businesses should help to solve social
problems — even if their businesses did not create them. And even if
the social actions do not bring profits.
There are, nevertheless, some famous people who are against
the new approach one of these is Milton Friedman, an American
economist who won the Nobel Prize for Economics in 1976. Milton
racial discrimination and at all times to behave with integrity. The list
is endless.
An example of the new approach can be found in banking. Some
well-known British banks have had pressure put on them to stop
doing business in South Africa. This is because many of their customers
are opposed to South Africa’s policy of Apartheid. For example, in
1986 Barclays Bank withdrew its business from South Africa. Similarly,
a few years ago, some Swedish companies were criticised for taking
part in an electrical power project in Africa. The project was located in
a country which was then a Portuguese colony. Some Swedish newspapers
accused the companies of ‘supporting Imperialism’.
The new concept of social responsibility means that businesses and
business people must have integrity. They must deal honestly with their
employees, and with the outside world. As Sir John Clark of the Plessey
company says, ‘I attach more importance to integrity than to ability.’
Successful companies are very sensitive if their integrity is attacked.
They usually respond sharply. Some time ago, an English health
inspector found fault with the standards of hygiene in a Trusthouse
Forte hotel. Lord Forte was most upset by the inspector’s accusations.
Making no attempt to plead guilty and by so doing avoid publicity,
the Trusthouse Forte Group fought the case in the courts. It also
advertised in several national newspapers to give its side of the case.
The integrity of the shoe-making firm, Clark’s, was recently
questioned. To make its shoes, Clark’s were using leather cured by
sperm-whale oil. Conservation groups heard about this and put pressure
on the company to stop using such leather. They even talked of
boycotting the company’s shoes. At first, Clark’s said that it had no
control over leather provided by its suppliers. However, a little later,
the Chairman Daniel Clark gave a direct order that the company
should only buy leather cured without sperm whale oil. He also invested
in testing equi pment to ensure that supplies of leather were free from
this type of oil.
A lot of business people agree with the ‘wider’ concept of social
responsibility. They accept that businesses should help to solve social
problems — even if their businesses did not create them. And even if
the social actions do not bring profits.
There are, nevertheless, some famous people who are against
the new approach one of these is Milton Friedman, an American
economist who won the Nobel Prize for Economics in 1976. Milton
– 76 –
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