Bus 101 Freeman vs. Friedman

Bus 101 Freeman vs. Friedman - Nicholas Connolly Bus 101...

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Nicholas Connolly Bus 101 Dr. Barr 4/7/2009 R. Edward Freeman 3.2 Edward Freeman and Milton Friedman are two well-known American businessmen who have created two very different ways we think about business. Friedman’s argument is that businesses should be concerned with my main objective, to increase profits for shareholders.   Friedman says, “there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engage in open and free competition without deception or fraud”(Freidman 79). He says that there is a social responsibility to use its resources to increase profits as long as no rules are broken. Freidman believes that only people, not corporations have social responsibilities, but in a corporation it is the executives who have a responsibility to the shareholders, which is to manage and maximize profits. Edward Freeman contrasts Freidman’s ideas with his stakeholder theory. The
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This note was uploaded on 11/15/2011 for the course BUS 101 taught by Professor Rollins during the Fall '08 term at Miami University.

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Bus 101 Freeman vs. Friedman - Nicholas Connolly Bus 101...

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