ethicsquestions - 1. The purpose if the corporation is to...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1. The purpose if the corporation is to make a profit for stockholders. 2. A businessman is to act in some way that is not in the interest of his employees. 3. Two main arguments: 1) stockholders are the owners of the corporation; hence corporate profits belong to the stockholders. 2) Stockholders are entitled to their profits as a result of a contract among the corporate stakeholders. 4. A contract is fair if both parties accept and are in agreeing of their actual stakes. In other words each party would be willing to turn the tables are accept the others’ terms of the contract. 6. It can be argued that here may not be a great difference between the two perspectives. Charitable giving can be defined on Friedmanite grounds. 8. Stakeholder’s theory of the corporation the company looks out for the best interests of the stakeholders. There are two sides; Empirical theory of management and normative theory of business ethics. Empirical - serving the interests of stakeholders (means), higher profits for stakeholders benefit. (ends). Effective management requires the balanced consideration of and attention to the legitimate interests of all stakeholders. (wide and narrow senses) Normative - management given equal consideration to the interests of all stakeholders and, when these interest conflict, manage the business so as to attain the optimal balance among them. Management will sometimes be obligated to sacrifice the interests of the stockholders to those of other stakeholders. Businesses have true social responsibilities.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/05/2008 for the course PHIL 1020 taught by Professor Hamawaki during the Spring '08 term at Auburn University.

Page1 / 3

ethicsquestions - 1. The purpose if the corporation is to...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online