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Profit Maximization Vs Social Responsible. Essay

2443 words - 10 pages

Organizational culture can be defined as a system of shared meaning and beliefs within an organization that determines, in a large degree, how employees act (Robbins, Bergman, Stagg and Coulter, 2003: 70). It includes routine behaviors, dominant values in an organization, norms and ethics, and work climate that want to be created in the organization. The purpose and function of organizational culture are to help bringing staff members from all levels of the organization become closer, to enhance the performance of the staff, and to become an inspiration for the staff. In an organization, there are so many ways for the staffs to learn about the culture of the organization, such as: stories from the founder or media about the company, rituals in the organization (such as: recognition, award ceremonies, annual picnics), material symbols that shows the organization's personality, and "special" language that used in the organization (Robbins et al., 2003: 79).But, sometimes it would be hard for staffs to learn about the organization's culture only from stories, rituals, etc. So, there are some policies or practices that a manager of an organization can put in place in order to encourage an ethical organizational culture. First, a manager could provide some training sessions so that the staffs would be able to learn and adapt with the organization's culture. Second, a manager could give a penalty or something like it to staff that doesn't practice the organization's culture in their day-to-day work. Third, in correlation with one of the way to learn organization's culture which in from ritual, in this case award ceremonies, a manager also could give an award for staff who do the best in practicing the organization's culture. With these ways, a manager will be able to encourage an ethical organizational culture in the organization.Basically, an organization can have one from two possibilities type of culture. The first one is culture that only for maximizing profit and the second is culture that put social responsibility as main objective. Like what have been said before, one of the functions of organizational culture is to become an inspiration for the staff; it means that from the culture, the staff could understand what is the main objective from the organization, whether maximizing profit or being socially responsible.These two possibilities of culture are reflected from opinions about organization's social responsibilities that in fact, lie mainly between two opposing views. On one hand, the classical view states that business is an economic institution directed towards profit whose only responsibility to society is to provide goods and services and to return maximum benefits to shareholders (Robbins et al., 2003: 136). The Nobel Prize winning economist Milton Friedman supported this classical view. Friedman said the primary responsibility is to operate the business to satisfy the interest of shareholders, and this interest of course is profit...

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