Milton Friedman And Richard Freeman Essay - 932 Words

Business ethics Name Institution Date Questions 1: Milton Friedman and Richard Freeman represent differences that exist on the positions held by scholars with regards to the obligations of a business firm. The major difference between the two is on the issues of corporation’s responsibilities to the society and the obligations to different groups. To whom does the corporation owe much responsibility? Friedman offers his views based on the shareholders theory. In his theory, he adopts the view that a corporation as an entity is just an artificial person defined under the law, and thus can only have artificial responsibility. His major disagreements are with those who hold the position that corporations have social responsibilities (Kaler, 2012, p. 250). In his view, the obligations of a firm are first to the stockholders. As a result, its primary should to maximize the stockholders profits under the set rules and regulations. This obligation should always prevail against others. On social responsibilities of an organization, hi s views are restricted to the position that only individuals are in a position to be held socially responsible. However, he insists that those individuals in management are employees of the stockholders and thus should only do that which is beneficial to the stockholders and in line with set legal obligation (Kaler, 2012, p. 255). On the other hand, Richard Freeman provides a view that he defines as the stakeholder’s theory. By the wordShow MoreRelatedStakeholders and Shareholders Debate4838 Words   |  20 Pagestheories are very much at odds regarding what is right. Shareholder theory asserts that shareholders advance capital to a company s managers, who are supposed to spend corporate limds only in ways that have been authorized by the shareholders. As Milton Friedman wrote, There is one and only one social responsibility of business — to use its resources and engage in activities designed to increase its profits so long as it ... engages in open and free competition, without deception or fraud.On the otherRead More2074 Final Notes Essay6510 Words   |  27 Pagesa person’s life is valuable only inasmuch as it is a source of happiness. / You are not important to a utilitarian, only the happiness you experience is significant. John Locke-Second Treatise of Human Government Locke on Friedman: Locke does not believe Friedman is correct when he states the market is self regulating. / Without government intervention, there will be too much inequality in the market. / We need the government to redistribute the wealth. Natural Rights: Property, life, libertyRead MoreStakeholder4051 Words   |  17 Pagesrecent example of this strand.) This research is still couched in terms of rational responses to problems caused by information asymmetry. It should also be noted that the shareholder wealth maximization paradigm is seen as moral and ethical (Friedman (1971), Jensen (2001) and Sternberg (1999)). Any legal market transaction where all participants are free and willing participants is considered moral. This is seen as the foundation of the free market system. One interesting point may be worthRead MorePtsd4841 Words   |  20 Pagesdeployed veterans. This scale compliments the GCS as it focuses on both guilt and suicidal tendencies. It is the appropriate instrument to administer to all of our combative veterans. It has performed extremely well in research and clinical settings (Friedman 2000). The PTSD Checklist is a 17-item self-report measure of PTSD symptoms based on DSM-IV criteria, with a 5-point Likert scale response format (Weathers FW, Litz BT, Herman DS). It is highly correlated with the Clinician Administered PTSD ScaleRead MoreIkea Strategic Position3791 Words   |  16 Pagesexactly what each of these categories means. In examining IKEA’s case, many confuse Porter’s `cost leadership’ with â€Å"low price†. To remove such confusion one must employ `market-facing’ generic strategies similar to those used by Cliff Bowman and Richard D’Aveni. These can be more aptly employed to the IKEA model based on the principle that competitive advantage is achieved by providing customers with what they want, or need, better or more effectively than competitors. Building on this propositionRead MoreEthics and Pic4307 Words   |  18 Pagesour work  [pic] e. We are workaholics 6. Who is credited with the saying â€Å"Humans are the only animals with an existential need for work’? a. Immanuel Kant  [pic] b. Fyodor Dostoyevsky c. Adam Smith d. Hannah Arendt e. Robert Nozick 7. Richard Florida coined the term â€Å"Creative class†. It can be defined as a. People who are creative b. People bound together by a common ethos that values creativity  [pic] c. People who enrol in classes to learn to be creative d. None of the above Read MoreTriple Bottom Line10664 Words   |  43 Pagesthat attention to social responsibility and ethics should help a firm sustain profits in the long run (the Convergence Claim, above). This belief has increasingly been part of mainstream management theory at least since the publication of Edward Freeman s 1984 classic. Strategic Management: A Stakeholder Approach.^^ Now it might be argued that what is new about the 3BL movement is the emphasis on measurement and reporting. But this is not true either. Those who use the language of 3BL are part ofRead MoreOrganizational Behaviour Analysis28615 Words   |  115 Pagesvery important points nevertheless. Read it for pleasure rather than information - it won’t provide you with much help writing essays, but it will make you laugh! Anthony, P. D. (1994) Managing Culture. Milton Keynes: Open University Press. Aronson, E. (1988) The Social Animal. New York: Freeman. This is a standard text on social psychology which is regularly updated in new editions. The importance of this text for the workshop is that it focusses a lot of attention on issues of influence betweenRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pagesseries: Paula Hamilton and Linda Shopes, eds., Oral History and Public Memories Tiffany Ruby Patterson, Zora Neale Hurston and a History of Southern Life Lisa M. Fine, The Story of Reo Joe: Work, Kin, and Community in Autotown, U.S.A. Van Gosse and Richard Moser, eds., The World the Sixties Made: Politics and Culture in Recent America Joanne Meyerowitz, ed., History and September 11th John McMillian and Paul Buhle, eds., The New Left Revisited David M. Scobey, Empire City: The Making and Meaning Read MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesIII, University of Arizona Jacqui Bergman, Appalachian State University Anne Berthelot, University of Texas at El Paso David Bess, Shidler College of Business at the University of Hawaii Bruce Bikle, California State University, Sacramento xxx Richard Blackburn, University of North Carolina–Chapel Hill Weldon Blake, Bethune-Cookman College Carl Blencke, University of Central Florida Michael Bochenek, Elmhurst College Alicia Boisnier, State University of New York William H. Bommer, Cleveland State