• Should Firms Go “Beyond Profits”?
    make as much money as possible” (i.e., maximize profits) while conforming to the “rules of the game” or “basic rules of the society” in which the firm is operating which include: (1) obeying the “law”; (2) conforming to “ethical custom” (i.e., business norms where you do business); and (3) acting...
    Premium 2235 Words 9 Pages
  • A Company Is the Property of Shareholders, Is an Exploded Myth
    country. So you have to balance between your profit maximizing trends as a owner of the company and responsibilities to your society by evaluating the environment of your society. Bibliography Article on “Taking Shareholder Rights Seriously”, by Julian Velasco, University of California...
    Premium 1458 Words 6 Pages
  • Journal of Consumer Marketing
    , returns to strategic CSR should rise. The Iron Law of Responsibility will continue: ``In the long run, those who do not use power in a manner which society considers responsible will tend to lose it'' (Boatright, 1999, p. 344). We might also find social audits becoming almost as common as financial...
    Premium 20578 Words 83 Pages
  • Rethinking the Social Responsibility of Business
    that many other businesses, such as Cypress Semiconductor, have been created by entrepreneurs whose sole purpose for the business is to maximize profits for their investors. Does Cypress therefore have any social responsibility besides maximizing profits if it follows the laws of society? No, it...
    Premium 2335 Words 10 Pages
  • Social Responsiblity-Jack Welch
    have done anything in his power to lower the taxes though. He could have done more! 2. Does GE under Welch illustrate a narrower view of corporate social responsibility closer to Friedman’s view that the only social responsibility is to increase profits while obeying the law...
    Premium 2411 Words 10 Pages
  • Business Communication
    responsibility.’ Therefore, in broad terms, CSR covers the responsibilities corporations (or other for-profit organizations) have to the societies within which they are based and operate. More specifically, CSR involves a business identifying its stakeholder groups and incorporating their needs and...
    Premium 3890 Words 16 Pages
  • Corporate Social Responsibility, Accountability & Reporting
    stakes into goods and services (Clarkson, 1995). The Classical Model argues that the main responsibility of a corporation is to earn profit to shareholder and to obey the law, however, the Stakeholder Model should take into all stakeholders’ right and their legitimate interest, and it is not strictly...
    Premium 2481 Words 10 Pages
  • Objective of Firm
    monopolist’s profits, induce firms to produce fewer goods than society could potentially produce, and motivate firms to raise price to consumers beyond that which is necessary to produce the goods. I. SCOPE A few words on scope: I do not specify here the source of shareholder primacy norms...
    Premium 8863 Words 36 Pages
  • Ethics
    should maximize profits while obeying the law - but many laws are amoral and some laws are immoral. The fact that corporations are not moral agents should be proof in itself that they cannot be said to have moral duties to anyone and thus it is incapable of either a right or wrong decisions - if there...
    Premium 1760 Words 8 Pages
  • Finance
    maximization of shareholder wealth any longer a realistic objective? 9. As an investor, do you think that some managers are paid too much? Do their rewards come at your expense? 10. How does the notion of risk and reward govern the behavior of financial managers? 11. What is corporate governance...
    Premium 7842 Words 32 Pages
  • The Concept of Business Ethics
    what you have a right to do and what is right to do. - Justice Potter (1983) Stewart Never let your sense of morals get in the way of doing what’s right. - Isaac Asimov (1998) Man is a social animal. Though rules of nature control humans as they control other living beings, man himself has derived...
    Premium 4087 Words 17 Pages
  • Social Responsibilities of Corporations
    think corporations do have the responsibilities to do social work within their capacity, but do not have be far away from the law. Friedman thought increasing profit is the social responsibilities for business. That is not wrong. No matter which occupations you are in, you have your own obligation...
    Premium 1549 Words 7 Pages
  • Philosophy Friedman
    due to the fact that shareholders might have unethical desires. On the contrary, this concern can be mitigated and largely avoidable because corporation decisions and actions are constraint by the law and public norms. Property law constraints the actions of managers, reduces moral hazard of...
    Premium 2192 Words 9 Pages
  • Business Ethics
    which holds that the interests of shareholders should be assigned first priority and what the shareholders would like to get in return on their investments is to get a share of the profits of the corporation. Meanwhile, according to Friedman, managers should not have social responsibility in his/her...
    Premium 1919 Words 8 Pages
  • Moral and Amoral
    struggled with the issue of the firm’s responsibility to its society. Early on it was argued by some that the corporation's sole responsibility was to provide a maximum financial return to shareholders. It became quickly apparent to everyone, however, that this pursuit of financial gain had to rake place...
    Premium 6180 Words 25 Pages
  • Corporate Social Responsibility
    formed the term stakeholder, meaning those on whom an organization's activities have an impact. It was used to describe corporate owners beyond shareholders. Proponents argue that corporations make more long term profits by operating with a perspective, while critics argue that CSR distracts from...
    Premium 3952 Words 16 Pages
  • Business Ethics Without Stakeholder
    the stakeholder paradigm as part of a broader skeptical critique of business ethics in general, one which denies that firms have any "social responsibilities" beyond the maximization of profit." This is not my intention here. I will argue that firms do have important social responsibilities...
    Premium 13247 Words 53 Pages
  • Corporate Social Responsibility: Global Definition of Csr, Impact of Csr on Smes, Best Practices, and Strategies Could Be Implemented in Bangladesh.
    shareholders (i.e. fiduciary duty). In this later evolutionary form, public policy frequently addressed specific social domains such as health and safety for workers, consumer protection, labour practices, environmental protection, etc. Thus, corporations responded to social responsibilities...
    Premium 10276 Words 42 Pages
  • business ethics
    ) obeying the law; (ii) conforming to “ethical custom” (i.e., business norms where you do business); and (iii) acting “without deception or fraud”.  The Body Shop: Business should do more than make money, we believe that companies have additional ethical obligations (i.e., beyond Friedman’s criteria...
    Premium 2179 Words 9 Pages
  • Cypress Semiconductor Notes
    is to maximize profits for their investors. Does Cypress therefore have any social responsibility besides maximizing profits if it follows the laws of society? No, it doesn't. Rodgers apparently created it solely to maximize profits, and therefore all of Friedman's arguments about business social...
    Premium 6890 Words 28 Pages