Corporate Social Responsibility Scott McLellan
Managing a corporation is not a job that can be performed by every person. Each of these people who do perform the job may have different views in some perspectives. These views may be referred to as or drawn out as business models. Three are three papers written on the topics of stockholders, stakeholders, and market failure models of corporate management that I would like to differentiate. The first essay is ‘The Social Responsibility of Business is to Increase Its Profits’ by Milton Friedman, the second being ‘A Stakeholder Theory of the Modern Corporation’ by Edward Freeman, and the last one is ‘Business Ethics Without Stakeholders’ by Joseph Heath. Each of these papers holds strong theories in which will be compared and contrasted. In my opinion, the stakeholder theory should be followed by all businesses in the sense that firms take all roles into consideration in order to have a successful profit maximizing business.
First off, stakeholders are a key factor in the success of a business or corporation. Each of these stakeholders can or will be affected by the decisions of others in the corporation. Their role in the business requires routine participation for the business to be successful.
There are many opinions on stakeholders but Freeman’s theory has some vital points we must take into consideration in order for the corporation to be successful as a whole. “That is, each of these stakeholder groups has a right now to be treated…. participate in determining the future … in which they have a stake.” (Freeman, 70). What Freeman is trying to come across saying is that everyone should be treated as ends in themselves. Everyone’s decisions in turn, affect one another. Financiers, employers, shareholders, etc. all determine the future outcome of the firm. As manager, it is critical to understand which direction these workers (financiers, employers, etc) are headed in, in order to keep the...