Social Responsibility of Business--student

Social Responsibility of Business--student - Comparative...

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Comparative Economic Systems Friedman: "Social Responsibility" Grand Valley State University Dr. Daniel Giedeman
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Friedman on Social Responsibility "The social responsibility of business is to increase its profits." Corporate executives work for stockholders Stockholders generally want profits maximized Executives are then obligated to make as money for the firm as is legally possible. If the executive does not maximize profits, then (s)he is acting in a way that is not in the best interests of the shareholders.
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Friedman on Social Responsibility If the executive acts "socially responsibly", (s)he is: Spending shareholders' money Spending customers' money Spending workers' money "he is in effect imposing taxes… and deciding how the tax proceeds shall be spent" Friedman then claims that this is "taxation without representation"
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Friedman on Social Responsibility If the executive acts according to social responsibility… "He becomes in effect a public employee, a civil servant, even
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This note was uploaded on 04/05/2011 for the course ECO 365 taught by Professor Giederman during the Winter '11 term at Grand Valley State.

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Social Responsibility of Business--student - Comparative...

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