Theories of Organizations and Society
Chapter nine covers in broad depth about the various organizational theories. The narrative is directed in support of firms retaining their own profit pursuit objectives rather that going into pursuit of other non-profit objectives. The author asserts that indeed the society through government and non-profit making organizations necessarily benefit from business through taxation and revenue appropriation in support of their activities. Therefore, it is only fair that firms are left in pursuit of profits rather than other objectives. The chapter examines the place of diversity, social responsibility and social entrepreneurship. The chapter applies specific articles in analysis of the three factors considered essential in organizational theory.
In Gendering Organizational Theory advanced by Joan Acker, the concept of societal perception and assumption of factors comes out clearly. The author asserts that the production of the organization depends on our perception of it. Indeed, the author observes the fact that previously, as is asserted by Gareth Morgan, the male dominated organizations tend to have male perspective in the organizational theory. The author subtly suggests that we ought to incorporate the perspectives of all segments of society.
The message is further emphasized by Taylor Cox Jr. in Creating the Multicultural Organization: The Challenge of Managing Diversity. She observes that management of diversity is inevitable and plays a central role in the success of the organization. She assumes the original position advocated by Joan Acker that in the long run, multiculturalism is essential for the benefit of the organization. However she concludes by observing that most organizations do lack proper management of diversity and that what is available is between toxic and deadly.
Corporate Citizenship: Social Responsibility by Archie Carroll and Ann Buchholz observe that businesses failed to play their role and therefore responsible for the societal problems. Social responsibility is defined as the aspect of the business to be nice especially in relation to the community in which they operate. The narrative is that businesses should adopt responsible policies and strategies. In the long run, these would result into economic, social and physical environment conducive for both the community and the business. Social responsibility to this extent includes economic, legal, philanthropic aspects to make it complete.
McWilliams and Siegel in Corporate Responsibility: A Theory of the Firm Perspective, attempts to outline the factors that determine the social responsibility scale of businesses. They assert that social responsibility of a firm would depend on the size, research and development, labour market, diversification level, among other factors. The authors together with the earlier mentioned are in consonance of the essential role corporate social responsibility plays. Indeed, this is seen as giving back to society. However, the latter pair suggest that corporate social responsibility should be tied down to the financial performance of the firm assuming a cost benefit approach.
Finally, the chapter covers the concept of social entrepreneurship. The authors observe that social entrepreneurship has received phenomenal prominence. They observe that the driving factor is the breed of pragmatic, visionary and innovative social activities. Indeed, social entrepreneurship is informed by the need to fix community problems with a dual approach that assumes both business and charitable ideals. Other observers argue that social entrepreneurship could be a direct consequence of economic, political and social pressures. It emerges then that social entrepreneurship is the approach in business of solving communal problems without losing the business face.
In addition, business people have been sourced into board of trustees of the non-profit organizations with the assumption that they will as such introduce business mind sets in the new organizations. On the other hand, business organizations have taken the trouble to redistribute their incomes to social services with the intention of curing the perception that there is merely corporate greed and obsession with accumulation. Those are the issues around social entrepreneurship.
Social entrepreneurship, therefore, can be described as an all-inclusive approach to solving societal problems and attaining social balance through the introduction of for profit ideas in non-profit organizations and philanthropists support venture units in aid of society. Helen Haugh in Social Enterprise: Beyond Economic Outcomes and Individual Returns, argues that the social entrepreneurial interventions have had a beneficial effect to the community both in overt and covert ways. She supports her argument through the qualitative and study of outcomes from six social enterprises. In the long run, the increased social entrepreneurship has positively contributed to the easing of the social pressures. Indeed credit ought to be given to social consciousness and social responsibility which the authors observe are the brainchild and originators of social entrepreneurship. The chapter essentially covers the effects of business on the society and their interaction. Eventually, the application of multiculturalism, corporate social responsibility and social entrepreneurship are tailored for the maintenance of a social balance.
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Shafritz, J. M., Ott, S. J., & Jang, Y. S. (2010). Classics of Organization Theory. New York: Cengage Learning.