Chapter 2, Beauchamp and Bowie
In addition to Section 2, go through http://www.bsr.org/CSRResources/ResourcesDocs/BSR_200508_Allen-White_Fade-Transform.pdf Precisely what is the purpose of a Corporation?
•Profits sixth is v. social responsibility
•Stockholders v. Stakeholders
Whom are stakeholders?
In respect to Friedman, can an enterprise do anything in the quest for profits? •No, it must not end up being deceptive or perhaps fraudulent
Who is Theodore Levitt?
•Former teacher of marketing for Harvard B-School, Ph. Deb. in economics, prolific writer, editor of Harvard Business Review, gave the term " globalization" has been referred to as the father of modern marketing What is meant by a " nonconsequentialist point of view? " (page 49 in textbook) •Check out meaning of consequentialism below
Can presently there every become agreement among Friedman and advocates of " cultural responsibility? " •Yes, in case the socially responsible act causes higher income. The Interpersonal Responsibility of Business should be to Increase Its Profits simply by Milton Friedman •Is organization social responsibility the same as socialism? (page 50) oYes, Friedman argues, seeing that political components, not economic mechanisms, identify the allowance of assets - that is certainly, the corporate CEO decides who also should get what, rather than the marketplace •Corporate professionals are providers of the owners, i. elizabeth., the stockholders - they must not spend someone else's funds to advance a specific agenda oto do so is equivalent to taxing and the CEO turns into a civil servant of kinds, a public employee •Only people have responsibilities, corporations might not have responsibilities •In fact, this sort of thinking can result in the drop of capitalism A Stakeholder Theory with the Modern Corporation by R. Edward Freeman •Managers you don't have a duty to stockholders nevertheless they have a fiduciary relationship with stakeholders. ostakeholders have an interest in, and must participate in " deciding the future direction of the firm in which they have a stake. " (page 56) •What varieties of laws and regulations support this perspective?
oconsumer regulations, product responsibility
•caveat emptor (let the buyer beware) has become replace with caveat venditor (let the seller beware) olaws related to worker relations, labor law, laws against splendour in hiring olaws safeguarding the community - environmental safeguard, local limitations on grow closings •Problems with free of charge markets
•There is actually a narrow and wide perspective of stakeholders - the narrow watch includes simply those who are " vital to the survival and success from the corporation. " •The part of managing is to stability the says of the other stakeholders. •What can be described as " normative core? "
oa group of questions??
•What are the floor rule principles for the Doctrine of Fair Legal agreements? othese are listed and explained in the textbook
•What three concepts does this individual advocate intended for reforming legislation of organizations? othese are listed and discussed briefly in the textbook
Two Ordre Theories of Business: A Critique by simply John Hasna •Stockholder vs . Stakeholder
•Which theory of distributive proper rights (or ethical theory) is employed to rationalize the stockholder theory? Two can be used: oUtilitarian - based upon the idea that the invisible hand of the marketplace leads to the very best outcome for society - promotes the typical interest •utilitarian can also be known as consequentialist - outcome concerns •The difficulty here is that people are very far from a free market in the U. S. •Another problem is that free marketplaces can include other concerns - BEAR IN MIND THESE?? oDeontological or non-consequential
•moral laws and regulations or obligations - think Kantian
•Rawls is also a deontologist towards the extent that he thinks outcome can be not the problem IF peoples' basic legal rights (liberties) happen to be violated •We can also consist of Libertarians from this deontological/non-consequential category •supports stockholder theory mainly because...