Strategic Management and CSR Policy Analysis: Swedish Medical Center

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This report analyzes the strategic management and Corporate Social Responsibility (CSR) model of the Swedish Medical Center, a large non-profit hospital in Seattle, U.S. Founded by Dr. Nils August Johanson, the center prioritizes quality healthcare services. The report examines the center's history, organizational structure, and CSR policy, particularly its alignment with Carroll’s model, which emphasizes economic, legal, ethical, and philanthropic responsibilities. While the center's approach leans towards Carroll's model through its 'charity care' program and ethical commitment, it does not strictly adhere to profit maximization. Ultimately, the Swedish Medical Center is recognized as a philanthropic organization dedicated to contributing to society by ensuring accessible health services, valuing quality, and demonstrating a consistent commitment to its social goals.
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Running head: STRATEGIC MANAGEMENT OF THE SWEDISH MEDICAL CENTER
Strategic Management of the Swedish Medical Center
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1STRATEGIC MANAGEMENT OF THE SWEDISH MEDICAL CENTER
Introduction
The aim of this report is to analyse the issue of the strategic management of the “The
Swedish Medical Center” and the CSR (Corporate social responsibility) model that it follows. It
is the largest non-profit hospital based in Seattle, U.S (Swedish.org, 2018). It was started by
Sweden born Dr. Nils August Johanson who had the wish to ensure quality services in primary
healthcare (Swedish.org, 2018).
Swedish Medical Center: history and organization
In 1908, Dr. Johanson, a Swedish surgeon convinced the other Swedish-American friends to
open “The Swedish” hospital (Swedish.org, 2018). The Swedish Medical Centre has been the
largest care provider in primary health care in Seattle since then. It has 1512 licensed beds,
13,317 employees, 118 clinics (Swedish.org, 2018). It caters to the need of people with different
health issues. They are spread over five campuses, which have special departments. This medical
center not only caters to the domestic patients, they also have services to international patients.
The Swedish Medical Center: an overview of the CSR policy
The company believes in “more than profit” motive. Its driving force has been the
patient’s care and safety. Hence, its Corporate Social responsibility (CSR) policy has been robust
since its inception (Swedish.org, 2018). The question that arises here is should the firm go
beyond profit-making motives and aspire to take socially responsible action? According to
Schwartz& Saiia (2012), one can have a significant positive or negative impact of the company
over the society depending on the actions it takes. According to Friedman’s theory of the CSR,
the most important part of an organization is the stakeholders (Carson, 1993). According to this
theory, the company should maximize its profit and invest it to the stakeholders who took the
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2STRATEGIC MANAGEMENT OF THE SWEDISH MEDICAL CENTER
risk of investing in their firm. From the analysis of the working of the company, it can be said
that it strictly follows Carroll’s model of CSR (Carroll, 1991). The Carroll’s model is based on
the four parameters, namely economic, legal, ethical and philanthropic. In case of this particular
company, it does not invest in its stakeholders like other companies and most importantly it does
not believe in profit maximization. Friedman argues that companies should have no “social
responsibility” and its only motive is profit making (Carson, 1993). However, The Swedish
Medical Centre runs a “charity care” program and provide financial assistance to the people
whose annual income is between zero to 400 percent of federal poverty level. It takes up
philanthropic measures to make a mark on society and follow an ethical approach towards the
good of society. Thirdly, it is a law-abiding company, which ensures that it does not go against
the laws of the health sectors in the U.S and every piece of information is published on the media
report for people, this makes them efficient and responsible. However, the company does not
earn a profit, which is a criterion for Carroll’s model. Nonetheless, it can be said that it does not
follow either of the models in the strict sense of the terms even though its approach is tilted
towards Carroll’s model of CSR.
Conclusion
The Swedish Medical Center is a philanthropic organization, which beliefs in
contributing to the society by ensuring health services to all. Their value for quality over quantity
and commitment to the cause has been successful in achieving their social goals through its
noble path and consistent effort.
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3STRATEGIC MANAGEMENT OF THE SWEDISH MEDICAL CENTER
References
Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral
management of organizational stakeholders. Business horizons, 34(4), 39-48.
Carson, T. (1993). Friedman’s theory of corporate social responsibility. Business and
Professional Ethics Journal, 12(1), 3-32.
Schwartz, M. S., & Saiia, D. (2012). Should Firms Go “Beyond Profits”? Milton Friedman
versus Broad CSR 1. Business and Society Review, 117(1), 1-31.
Swedish.org (2018). A History of Excellence | Swedish Medical Center Seattle and Issaquah.
[online] Swedish.org. Available at: https://www.swedish.org/about/overview/history
[Accessed 19 Dec. 2018].
Swedish.org. (2018). About Swedish | Swedish Medical Center Seattle and Issaquah. Retrieved
from https://www.swedish.org/about
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