American Economist Milton Friedman, Essay Example

How do you feel about Friedman’s statement?

I have mixed thoughts regarding Friedman’s statement. I will say that although it is true that focusing on sales revenue in order to maximize profits for a company’s stock holders is essential for the continued operations of a business, it cannot act as the only priority. The interests of the stake holders are just as important for the sustainment of any business. If the stake holders are not satisfied through a company’s well-grounded social corporate responsibility or (SCR) then they will stand against the company giving it a negative reputation. Such a negative reputation could be harmful to sales and investments.

 Provide one argument that supports Friedman’s assertion and one argument that goes against his assertion.

An argument that supports Friedman’s assertion might be that worrying about stake holders is an opportunity cost for stock holders. An argument that goes against Friedman’s assertion might be that SCR is in many ways more important than the investors; as satisfying the interest of the stake holders first will draw investors to follow.

Which of the historical factors identified in Friedman’s article do you feel will continue to impact CSR in the future?

I think technology is the biggest thing that is impacting the future. This is because many industries must worry about environmental concerns, known as the “green agenda” and this plays a big role in SCR.

How do we determine whether an organization is socially responsible or not?

Every organization is social responsible in some way whether it is major or minor. Ethics is essential to any business and with ethics comes social responsibility whether it is a small sized business or a publically traded company.

What tools can businesses use to make CRS decisions? Explain how perception drives CSR.

Evaluation of current standing with the stake holders is the most important tool for a business to make SCR decisions. Perception drives SCR because it governs how a business should respond to stake holders.