midterm essay on milton friedmanand ed freeman

midterm essay on milton friedmanand ed freeman - Milton...

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-1 Milton Friedman’s theory was called the stockholder view of business. Basically the stockholder view as described by Friedman is that the social responsibility of a business is to maximize it’s profits for the companies shareholders as long as they do so within the law. Friedman’s first conclusion was that business executives have one main obligation and that is to maximize the profits for the stockholders who have taken the risk and invested money into their company, and the business executives must do this without any illegal activity, deception, or fraud. The second part to his conclusion had a couple of different parts. The first was that spending the investors profit’s in programs or ways they don’t or didn’t approve of is considered to be taxation without representation. The final part of his second conclusion was that maximizing profits would produce the best overall outcome for society in general. Milton Friedman would strongly hate and disagree with the NYSEG corporate responsibility program. The main reason he wouldn’t agree with it is because the program didn’t allow for the stockholder’s to receive the maximum profit possible. The program spreads out the profits to all those involved including the customers, employees, and community which Friedman feels like the company owes nothing to so they shouldn’t receive anything that takes away from the investors profit. Friedman’s stockholder view is based on the idea that in a democracy citizens determine
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This note was uploaded on 04/09/2008 for the course BUSINESS E 242 taught by Professor Arnold during the Spring '08 term at University of Tennessee.

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midterm essay on milton friedmanand ed freeman - Milton...

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