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Unformatted text preview: B usiness E thics Test 2 Review
F r iedman(Should not be involved w ith Social Responsibility)
Who does a business have a responsibility to? Stockholders or Society? H ow do we See this corporation? Legal Definition of Corporation
• • • • Private, profit-making collective venture People invest Stockholders appoint themselves and executives become agents Their interests are to make more $ within law What would happen if an executive would fill some corporate r esponsibility?
• Costing company money (supposed to be function of Gov’t) P roblems that this Creates:
Technical • • Executives are experts at making money and not running the country Business is the wrong medium to create social change due to possible social p ressure Theoretical “Taxation without Representation” • • You elect gov’t officials = approval Violation of branches without checks and balances (executive all 3) Cr itique of Socialism • Allocation of resources • Capitalism is needed for democracy; Free market system does not impose or determine who gets what (or any other values) • Socialism depends on someone’s judgment F reeman
• • Corporation is an institution that organizes people’s lives (just like schools) Sociologist o o Provides benefits to people who keep them afloat Held together by loyalty, respect, finance Main Point : This is what a corporation actually is (Friedman’s shit only works for small
factories) All of the Relationships are Monetary and Non-monetary Role of Management
• • • Keep institution afloat Have to have functional relationships with stakeholders Maintain balance of stakeholders Rawls Normative Core • • • Working together and everyone benefits from participating Contracts are fair bets Every society has a set of core values ...
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This note was uploaded on 11/04/2010 for the course PHIL 106 taught by Professor Seltzer during the Spring '10 term at Pennsylvania State University, University Park.
- Spring '10