de-Transform.pdf What is the purpose of a Corporation? • Profits v. social responsibility • Stockholders v. Stakeholders Who are stakeholders? • stockholders • employees • customers • managers • supplies • local community According to Friedman‚ can a business do anything in the quest for profits? • No‚ it must not be deceptive or fraudulent Who is Theodore Levitt? • Former professor of marketing at Harvard B-School‚ Ph.D. in economics‚ prolific writer‚ editor of Harvard Business Review
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It is obvious to many that the goal of a company is to make a profit. According to Milton Friedman‚ what many businesses do not say is that this is their only responsibility and that it is to make the highest profit possible. As members of society‚ we should be concerned that these decisions will have affect us. I believe that a business has the responsibility to make a profit‚ but it has many others as well. A business not only has to make a profit but think about the long term affects such as their
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Ethics Paper Economist Milton Friedman said that “the only entities who can have responsibilities are individuals. A business cannot have responsibilities. So the question is‚ do corporate executives‚ provided they stay within the law‚ have responsibilities in their business activities other than to make as much money for their stockholders as possible? And my answer to that is no‚ they do not.[2]” Nowadays‚ this debate falls into the CSR‚ or also know as the “Corporate Social Responsibility”
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vol. 59‚ no. 1‚ p. 30. Brammer‚ S & Pavelin‚ S 2005‚ ’Corporate reputation and an insurance motivation for corporate social investment ’‚ The Journal of Corporate Citizenship‚ no. 20‚ pp. 39-. Retrieved November 24‚ 2006‚ from InfoTrac database. Carroll‚ AB 1999‚ ’Corporate social responsibility: Evolution of a definitional construct ’‚ Business and Society‚ vol. 38‚ no. 3‚ pp. 268-95. Duncan‚ A & Richardson‚ K 2005‚ ’Is corporate volunteering falling short? ’ Business Community Intelligence‚ no
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endorsement of products: an advertising cue affecting consumer pre purchase evaluation of goods and Carroll‚ Angela. (2009). Brand communications in fashion categories using celebrity endorsement Erdogan‚ B.Z. (1999). Celebrity endorsement. Journal of Marketing Management. 11 (1). Erdogan‚ B.Z. (2001). Selecting celebrity endorsers: the practitioner’s perspective. Journal of Advertising Research Friedman‚ H. H. (1979). Endorser effectiveness by product type. Journal of Advertising Research Hsu‚ C
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their decision-making processes instead of making choices based solely upon the interests of shareholders. On the other hand‚ Milton Friedman argues that the only social responsibility that organizations have is to satisfy their owners (i.e. company shareholders) (Williams‚ 2014 p.77). This view is called the shareholder model and it’s all about maximizing profits. Friedman believes that organizations cannot effectively act as moral agents for all company shareholders. “Doesn’t it make more sense
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Cited: Friedman‚ M.‚ & Friedman‚ R. D. (1980). Free to Choose. New York: Harcourt Brace Jovanovich‚ Inc. Hayek‚ F. A. (1944). Road to Serfdom. London: The Institute of Economic Affairs. Keynes‚ J. M. (1963). Essays in Persuasion. New York: W.W. Norton & Company‚ Inc. Mankiw
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Ethical Theories It is vital for businesses to understand the importance of ethics in this dynamic environment. Organizations that are committed to long term success recognize and realize that creating a culture where ethical behaviors are rewarded and encouraged is the ultimate key to survival and growth. According to Joseph 2003‚ business ethics refers to clear standards and norms that help employees to distinguish right from wrong behavior at work‚ while in the other hand ethical theories are
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Term Paper Capitalism and Freedom‚ written by Milton Friedman‚ seems to focus significantly on the connections between the economics and politics‚ and the effect that those have in various aspects of society. This relationship was referred to throughout the book‚ and the topics Friedman discusses ranged between governmental control of money‚ to foreign policy and trade and the effect that has on our economy. Through the course of the book‚ Friedman constantly refers to his “classical liberal” view
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society‚ while on the other there is an argument more so between communal property versus private property. In Free to Choose‚ Friedman expresses that private property is something that is essential to society especially for an ideal free market which would rest on private property. In Utopia‚ More argues common property versus private property and that‚ in a similar way to Friedman‚ that private property is an important part to a country and that a country without private property will have no prosperity
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