Jack Welch and General Electric

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Case 1: Jack Welch at General Electric
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Mirza Zia – G1213229
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QUESTION 1
Based on the definition in chapter, GE under Jack Welch was not able to fulfill his duty. Even though he did create considerable wealth during his tenure as CEO, he did so at the cost the societal harmony and environmental well-being. According to the case, during his time as the CEO of GE, he fired a large number of employees due to underperformance, or because of outsourcing. Additionally, it was under his leadership that GE had severely polluted in the Hudson River, and more importantly, lobbied against its clean up at GE’s expense. Furthermore, while he enjoyed a large number of perks during and after his time at GE, he created a pension fund that was unfair to workers at GE. Based on his actions, we believe he did not fulfill his duty, as defined by Chapter 5.
We believe he could certainly have done better. The phenomenal growth GE achieved during his time was by prioritizing wealth creation over responsibilities to stakeholders such as employees and the environment. Be believe that there is a middle path that can be pursued, which allowed GE to grow in a much more sustainable manner. We feel he could have paid more attention to employee well-being by being slightly more flexible in their performance evaluation and should have promoted diversity. Based on his actions, it seems Welch followed the “survival of the fittest” maxim ruthlessly, and in doing so caused disharmony and stress among its employees. Additionally, GE under Welch could have been slightly more environmentally conscious. While it may not have been known at the time when PCB was being dumped into the Hudson River that it was toxic, he should not have lobbied against the clean-up after the ill…...

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