fi311 - Mengxiao Zhao A41855310 06/20/11 1. Is it possible...

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Mengxiao Zhao A41855310 06/20/11 1. Is it possible to pursue goals of social responsibility (ethics) and shareholder wealth maximization at the same time? Explain your response (use an example to support your position, if possible). Corporate social responsibility is the relationship between business and society. It is possible to pursue goals of social responsibility and shareholder wealth maximization at the same time. In fact, besides maximize the profit for their own shareholders, a successful corporation should also focus on ethics area. In our movie, Garfield intends to take over New England Wire and Cable, sell it off in parts and finally shut off the operation. Since this family operation is also the living power for many residences in that small town, many people and families will have to face a hard time if Garfield achieves his goals. Although he gains more profit for his shareholders, he lost his reputation and respect from the public. Social responsibility can create a positive public image. Although failure to maximize shareholder wealth may impair the company and hurt some groups since they are the source for the corporation, it does not mean social responsibility and maximizing shareholder wealth are mutually opposite. The social responsibility of business is to increase its profits. A classic article by Milton Feiedman in the New York Times Magazine also pointed out that, establishing a connection between the goals of shareholders wealth maximization and profit maximization provides a useful initial starting point for developing an ethical analysis SWM.
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2. In the movie, Jorgenson says “…a business is worth more than the price of its stock.” Is there any validity to this statement?
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fi311 - Mengxiao Zhao A41855310 06/20/11 1. Is it possible...

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