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Strategic_Mgt_04Activity2.docx - P-M-I CHART Friedman’s...

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P-M-I CHARTFriedman’s Traditional ViewPlus (Advantages)Minus (Disadvantages)Increasing profits is the mostimportant business goal of a firm.Despite the huge profit they are gaining,the company does not give anything backto the societies that makes the society tohave low standard of living and lack ofinfrastructural facilities, that makes thecompany looks greedy.InterestingA businessperson who acts “responsibly” by cutting the price of the firm’sproduct to aid the poor, or by making expenditures to reduce pollution, or byhiring the hard-core unemployed, is spending the shareholder’s money forgeneral social interest.By taking on the burden of these social costs, thebusiness becomes less efficient resulting to price increases to pay for theincreased costs or postponement of investments in new activities and research.These results negatively affect the long-term efficiency of a business.
Carroll’s Four (4) Responsibilities of BusinessMy Decision
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Term
Spring
Professor
Ms. Rea Martesano
Tags
Corporate social responsibility, Archie Carroll, important business goal of a firm

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