Social responsibility is the obligation of management to take action that protects and improves the welfare of society in conjunction with the interests of the organization. Based on the Challenge Case, Verizon protects and improves its communities through the use of its advanced telecommunication networks to improve the quality of life. Verizon presently makes substantial contributions in applying this technology in many different areas of community life and concern. According to Keith Davis's social responsibility model, making such investments in the welfare of society is essential to being a good business citizen. Corporations, however, must also take steps to protect their own interests while making social investments. For example, by helping to improve the educational level of citizens throughout the world, Verizon is simultaneously protecting its interests by preparing these citizens to be better able to use Verizon technology products in the future. Following Davis's model of social responsibility further, Verizon should commit to benefiting society because of the vast power the company possesses in creating such benefit. It should be remembered, however, that the costs of social responsibility activities can be passed to consumers, and action should be taken only if it is financially feasible. For Verizon to invest in social responsibility activities to its own financial detriment would be socially irresponsible given the company's commitment to employees and stockholders. Verizon could become involved in many different areas of social responsibility. Currently, however, the company targets two specific areas of concern: literacy and education and safety and health. In addition, it provides financial support to other not-for-profit organizations supported by its employees. No matter how much Verizon does in pursuing social responsibility goals, however, it will no doubt be criticized by someone for not doing enough. At this point, Verizon's activities in the area of social responsibility appear to be highly significant. Anything Verizon does within the sphere of social responsibility could result in a short-run profit decrease simply because of the costs. Although, at first glance, such action might seem "unbusinesslike", performing social responsibility activities could significantly improve Verizon's public image and could be instrumental in generating increased sales. Some social responsibility activities are legislated and therefore must be performed by businesses. Most of the legislated activities, however, are aimed at larger companies like Verizon. Such legislation has to do with required levels of product safety and employee safety. Because Verizon is not required by law to support things such as education or campaigns to end domestic violence, whatever it might contribute to such areas would be strictly voluntary. In making a decision about how to support society, Verizon management should assess the positive and negative outcomes of such support over both the long and short terms, and then establish whatever support, if any, would maximize its success and offer some desirable contribution to society. Verizon should communicate to all organization members, as well as society, those areas it will support and why. The use of its Web site could greatly facilitate this communication. Verizon should strive to maintain a relatively high level of social responsiveness in pursuing its social responsibility activities. To do this, management should make decisions focusing on Verizon's established social responsibility areas and approach meeting those responsibilities in appropriate ways. In terms of supporting education, for example, management must first decide if Verizon has a social responsibility to become involved, through the design and application of its products or efforts, in society's education issues. Assuming it was decided that Verizon has such a responsibility, it must then determine how to accomplish the activities necessary to meet it. For example, Verizon might employ its expertise to expand the online offerings of Thinkfinity.org, its Web site repository of free educational materials. Making appropriate decisions will help Verizon meet social obligations effectively and efficiently. In terms of implementing an approach to meeting social responsibilities that will increase Verizon's social responsiveness, management should try to view the company as having both societal and economic goals. In addition, management should attempt to anticipate social problems and actively work to prevent them. Managers at Verizon should know that pursuing social responsibility objectives is a major management activity. Therefore, they must plan, organize, influence, and control Verizon's social responsibility activities if the company is to be successful in reaching social responsibility objectives. Regarding the planning of these activities, management should determine how Verizon will achieve its objectives. By incorporating social responsibility planning into Verizon's overall planning process, social trends forecasts can be made along with economic, political, and technological trends forecasts. In turn, these forecasts would influence the development of plans and, ultimately, the action taken by Verizon in the area of social responsibility. Management also must be able to turn Verizon's social responsibility policy into action. To convert a goal into action, management should first communicate the policy to all organization members. Next, it must determine the best way to achieve the goal. Finally, management should make sure everyone at Verizon is committed to meeting related objectives and that lower-level managers are allocating funds and establishing appropriate opportunities for organization members to help implement this policy. In addition to planning social responsibility activities at Verizon, management must organize, influence, and control them. To organize these activities, orderly use of all resources at Verizon must be established to carry out the company's social responsibility plans. Developing an organization chart that shows the social responsibility area with corresponding job descriptions, responsibilities, and specifications for the positions would be an appropriate step for management to take. To influence social responsibility activities, organization members should be guided in directions that will enhance the attainment of Verizon's social responsibility objectives. Management must lead, communicate, motivate, and work with groups in ways that are appropriate for meeting those objectives. To control, management must make sure that social responsibility activities occur as planned. If they do not, changes should be made to ensure that activities will be handled properly in the near future. One tool that can be used to check Verizon's progress in meeting social responsibilities is the social audit. The audit will enable management to check and assess system performance in such areas as economic functions, quality of life, social investment, and problem solving. Assuming management at Verizon is ethical, its decisions would focus on enhancing the well-being of all company stakeholders. In essence, management should follow the Golden Rule by acting in a way that it would expect others to act toward it. Decisions at Verizon will always be ethical if they are truthful and fair to all concerned, if they build goodwill and better friendships, and if they are beneficial to all concerned. Verizon would want its corporate decisions to be sustainablethat is, able to meet the company's present needs without compromising the needs of others in the future. It would be up to Verizon management to determine the steps the company must take to achieve organizational sustainability. For example, it may be necessary to hire additional staff with unique expertise to help Verizon achieve sustainability.

Question

One criticism of business, is that engaging in activities like what is demonstrated in the case, where Verizon "gave back" to society, will make business more powerful. Would you agree with this position? Explain.