Basically the exec is imposing taxes using others

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Basically the exec is imposing taxes (using others’ money) and spending it at his discretion; which only gov’t and its processes should be able to do. He is legislator, jurist, and executive by determining who to tax, by how much and how to spend it How does he know that his actions will have positive effect like actually prevent inflation or pollution? Friedman argues against people who believe that others who support gov’t taxes and expenditures for social responsibility simply failed to convince others to be socially responsible so they take matters into their own hands and get what they want in an undemocratic way what they couldn’t get democratically many companies use social responsibility to cloak their self interest like providing services to the community just so they can attract better employees or get better tax benefits, etc execs try to affect/influence the market and call for gov’t price and wage controls (which all may hurt the market) in the name of social responsibility because many of them are shortsighted when it comes to things external to their business social responsibility should be a unanimous and ppl need to conform to the general social interests that the majority vote to agree upon (democratically) not just simply what they want 13. According to M. Friedman in his article “The social responsibility of business is to increase its profits”. Under which conditions / criteria would CSR engagement by a firm be acceptable to him and Porter /Kramer? It is fine when an individual business owner (sole proprietor) engages in CSR because he is using all the money, time and energy of the business that he owns so he is not spending the resources of others (not taxing others) and thus can freely spend in any way he wants. Any effect he has on customers (by raising prices to fund these activities) or employees (hiring lower skilled people that decrease wages) will be minimal since it is probably not a large corporation or having any monopolistic power 21
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BU481 – Midterm #2 Questions- List 1 & 2 2010 14. According to M. Porter and M. Kramer and their article “Strategy & Society”, please define and describe two factors that led most firms’ activities towards CSR to be less profitable than expected. Please provide an example covered in the article or discussed in class. -The CSR activities of companies have not produced the productive results expected because of two factors: 1. Pits business vs. society, when they are really interdependent o Companies and society must develop a mutually beneficial relationship as they success of one depends on the success of the other. o They must engage in Shared Value (where choices benefit both sides) and no longer try to take advantage of the other or have win or lose attitude.
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