The Friedman Doctrine And Social Responsibility - 1276 Words

The Friedman Doctrine Taking a share holder approach to social responsibility, Milton Friedman views shareholders as the economic engine of the organization and the only group a firm must be socially responsible to. For the risk taken by investing in the firm, Friedman says the goal of the firm is to maximize profits and return portions of those profits to shareholders. Because a firms’ only concern is to increase profits for themselves and shareholder, they have not social responsibility to the public or society. The shareholder themselves in their private capacity, have social responsibility. Friedman states that the only social responsibility a business has is to use its resources to increase profits. The company is to engage in open and free competition without deception or fraud (Dunn Burton, n.d.). Cultural Relativism The principle that an individual person’s beliefs and activities should be understood by others regarding their own individual culture is cultural relativism. Researched by Franz Boas and later popularized by his students in the 20th century. The concept that civilization is not absolute but, relative. And that our ideas and concepts are true only so far as our civilization goes. Cultural relativism is the idea that all beliefs, norms and values are dependent on their cultural context and should be treated as such (Boundless.com, 2015). The Righteous Moralist When doing business in foreign countries, the righteous moralist claim that aShow MoreRelatedPHI208 WK3 Reading Quiz Essay845 Words   |  4 Pagesright thing will also bring about negative consequences, including that to the whistleblower. Which is one of the claims that Milton Friedman presents to make the case that a corporate executive who undertakes acts that are in line with the common understanding of corporate social responsibility is also accepting the doctrine of socialism? CORRECT- The doctrine of socialism is accepted when it is believed that the centrally directed political mechanism is the most efficient way to allocate scarceRead MoreSocial Responsibilities And Moral Character Of Business1175 Words   |  5 Pages Social Responsibilities and Moral Character of Business Milton Friedman was a 20th century American economist who advocated free-market capitalism. In 1970 he submitted an editorial article entitled â€Å"The Social Responsibility of Business is to Increase its Profits† to the New York Times. In the article, Friedman argues that in free market systems it is nonsensical to make corporate entities adhere to â€Å"social responsibilities of business† pushed by activists, as corporations are artificial in natureRead MoreSocial Responsibility And Business Ethics Essay1470 Words   |  6 Pagesrole of social responsibility in business organizations and society. This paper will compare similarities and differences between Cohen’s perspective on social responsibility to the social responsibility and business ethics theories of Drucker and Milton Friedman. Furthermore, this paper will provide a frame of reference on corporate social responsibility and business ethics presented in other research. Social Responsibility Defined Cohen, 2009 wrote in his article that Drucker defined social responsibilityRead MoreSocial responsibility and Ethics in International Business Essay1392 Words   |  6 Pagessuccess of companies in exploiting emerging opportunities and tackling their accompanying challenges relies heavily on how deeply they understand the dynamics of their operating environment† (as cited by Abebe, Elmuti, Minnis, 2005, p. 1024). Social responsibility and ethics Global expansion has developed a strategic imperative for nearly all large organizations and their managers. 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A society relies onRead MoreThe Ford Pinto Case Analysis1576 Words   |  7 PagesThe Ford Pinto Case Milton Friedman believed a free-market system, in which goods and services are exchanged and controlled by individuals and privately-owned businesses without government authority, was the only way to achieve personal freedom. Adam Smith, a 18th century philosopher and economist, held the belief that in a free society, the role of government should be limited to the protection of the people, the administration of justice through the court system, and the maintenance of all publicRead MoreImpact Of Csr On Human Rights Abuses Essay1635 Words   |  7 PagesGlobal Compact defines CSR as the voluntary responsibility of corporations to meet human rights, labor, environmental, and anti-corruption principles. In China, The Amended Company Law of the People’s Republic of China came in effect on January 1 2006. The law stipulated that companies must adhere to social ethics, business ethics, trustworthiness, and fulfill social responsibilities. The Shenzhen Stock Exchange also publishe d the Social Responsibility Guidelines for Listed Companies in 2006, whichRead MoreImportance Of Corporate Social Responsibility On Todays Society1136 Words   |  5 PagesImportance of Corporate Social Responsibility in today’s society Before five years, I came across a situation which led me to think about the importance and need of social responsibility by business enterprises. To start off giving a brief background, my brother was a fresh graduate from the school of architecture where he got his first individual contract in India. He had to design a mall that was planned to kick start after few years. The land where it was being constructed belonged to an oldRead MoreBusiness Ethics : Corporate Social Responsibility Essay1675 Words   |  7 PagesSeydina M. Fall E-Business Ethics A corporation must try to avoid egregious negative externalities, must actively promote corporate social responsibility (CSR), and must engage in philanthropy. Let’s take the example of the mining industry, in which 75% of mining companies (diamonds, copper, uranium, cobalt, etc.) are listed on the Toronto Stock Exchange1. For Canada, mining is a source of economic prosperity that brings along with it some risks. To maintain their competitive advantage, it is crucialRead MoreIn 1960, Frederick Wrote That Social Responsibility In1742 Words   |  7 PagesIn 1960, Frederick wrote that Social responsibility in the final analysis implies a public posture toward society’s economic and human resources and a willingness to see that those resources are used for broad social ends and not simply for the narrowly circumscribed interests of private persons and firms (Frederick, 1987). Walton emphasized that the essential ingredient of the corporation’s social responsibiliti es include a degree of voluntarism, as opposed to coercion, an argument that business