Friedman: The purpose of a business is to maximize profits while adhering to law and ethics. Primarily‚ this argumentation is based on the notion that corporations‚ as legal persons‚ cannot have responsibilities like natural persons. Secondary‚ Friedman’s argumentation is based on the principle of ownership and employment. By not complying with the duty of serving the owners’ interest (maximum profit)‚ a manager would allocate resources artificially and arbitrarily. This spending would be unjust
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or the stockholders of the business. Friedman says that there is only one social responsibility for the business: to use its resources in order to increase its profits as long as the business stats within the rules that are assigned‚ as for example to compete in free competition and without cheating or fraud. Milton Friedman’s first argument is that the social responsibility of business is to increase its profits. Managers must have fiduciary responsibility to the owners and the purspose of the
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Freeman and Friedman offering opposing views to answer the question “What is business’s responsibility?” Freeman puts forth what he calls the “stakeholder theory” while Friedman advocates for the “stockholder theory.” Freeman’s stakeholder theory identifies different “stakes” that influence an organization. Each of these parts is integral to the well-functioning of the organization. Included in these categorizations are employees‚ shareholders‚ communities‚ and customers. Freeman advises organizations
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article was repetitive and a little too drawn out. I realize the importance of the examples and the different perspectives of managing stakeholders and putting yourself in their position. I learned a lot from this article‚ but it became tedious in the last seven pages. Milton Friedman’s article went into grave detail the social responsibilities of an individual vs. the social responsibilities of a business. He also explained the duties of the businessman: legislator‚ executive‚ and the jurist.
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1. Introduction Social responsibility of business has been a subject of intense controversy and interest over the past four decades (Jamali 2008). The purpose of this paper is to critically analyze the two different views of social responsibility of business among scholars and business practitioners. The first is the shareholders view of Milton Friedman and another one is the stakeholder view of Bob Dudley‚ Group Chief Executive of BP Corporation. I will outline key arguments and point out drawbacks
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Project on - CORPORATE SOCIAL RESPONSIBILITY – AN IMPERATIVE PERSPECTIVE Project submitted by: Apurva Taran B.B.A.LL.B/2010/011 NATIONAL LAW UNIVERSITY‚ ORISSA 2|P ag e Agenda Introduction How does it help in Human development? Global analysis of CSR Focus on Indian perspective Initiative from the major companies in India Some major issues regarding CSR Worldwide Effect Conclusion References 3|P ag e Introduction Corporate social responsibility is basically
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Corporate Social Responsibility (CSR) is a very controversial topic. A question that has been debated for the past few decades is; is it corporately viable to introduce social responsibility as a proposed addition to the work ethic of business organisations. As well as‚ if adopting the framework of corporate social responsibility would yield positive improvements for those organisations. The purpose of this essay is to research the notion of CSR and uncover its true framework and outline what social
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Government bodies discovered the reliable ways by keeping the welfare aspect as the motivation factor. In other terms if we say then‚ the concept of corporate social responsibility is not new to Indian companies. Corporate social Responsibility activities have their advantages. The benefits are in terms of building a positive image and encouraging social involvement of employees‚ which in turn develops a sense of loyalty for the organization. The companies have understood that the retention of market
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The benefits and disadvantages of co-operate social responsibility By Mahamed Abdi Studying for Business SM1007 Student Number: 0747672 There is an ongoing debate over business roles in society which revolves around two opposing arguments. On the one hand‚ it is argued that CSR issues are not suitable to corporate agenda. This point of view maintains that corporations and society pursue different goals‚ and that the aims of one can only be achieved at the expense of the other. Companies
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Corporate Social Responsibility This essay will be based on corporate social responsibility (CSR). It should allow the reader to understand what CSR is‚ the importance of CSR and how it would influence customer activities. Themes that would be included in this essay will be the background of corporate social responsibility‚ history and the development of corporate social responsibility. The key concepts will also be explained and the different stakeholders which will be linked to corporate social
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