Premium Essay

Social Responsibly of Business Argument

In: Philosophy and Psychology

Submitted By hattenjs
Words 1255
Pages 6
Social Responsibly of Business Argument PHI 103: Informal Logic
November 3, 2014

In Milton Friedman’s article, “The Social Responsibility of Business is to Increase its Profits”, published in The New York Time Magazine back in 1970 Friedman proposes the argument that a corporations social responsibility is to increase profits. “Milton Friedman’s article entitled The Social Responsibility of Business is to Increase its Profit is one of the most often used counter arguments for people who would eschew the idea that a corporation should consider more than just shareholders.” (College of Law) While creating a very debatable argument Friedman has opened my eyes to a topic of which I have never thought about or pondered. One premise that he makes is that only people or humans have responsibilities while a corporation may be considered an “artificial person” with artificial responsibilities yet an actual business cannot have social responsibilities. So does this mean corporations are to only look after themselves and shareholders and let customers deal with it? Working for the large corporation Ingersoll Rand I have seen first-hand that profit is more important than satisfied customers. For instance, there was a certain product my store was purchasing locally and selling it at different margins depending on the circumstances and customer. By purchasing this product locally we had the freedom to sell at basically whatever margin we wanted. Almost three months ago corporate decided this product cannot be purchased locally anymore and that it will be monitored by them and now each week we are given a very strict price sheet to sell this product at. Their reasoning being if we sell a quantity of one of this product with forty percent margins it would be more profitable than selling a larger quantity with lower margins. It sounds to me like they have…...

Similar Documents

Premium Essay

Timberland’s Corporate Social Responsibility

...Case Study: Timberland’s Corporate Social Responsibility- Under New Ownership 1. How would you characterize Timberland’s exercise of its corporate power in society? Is Timberland using its influence responsibly? If so, how? Timberland’s exercise of its corporate power in society would be characterized as socially responsible since the company has created a commitment to giving back to society and its organization’s stakeholders. Timberland acts in such a way that enhances its society and its inhabitants and the company can be held accountable for any of its actions that affect people, the community and their environment. Timberland uses it influence responsibly by “trying to make a difference in communities where we live and work”. The company had launched the Path to Service program which allowed employees to be involved in numerous opportunities for community involvement from rural medicine outreaches to youth development. In addition to making both cash and product donations, the company was focused on sustainability issues which included reducing its carbon emissions and using renewable energy sources. 2. Has Timberland balanced its economic and social responsibilities through its various programs, such as the annual Serv-a-Palooza event and sustainability goals? Are the company’s programs examples of enlightened self-interest? Timberland has definitely balanced its economic and social responsibilities. The company fulfills its economic responsibilities to......

Words: 628 - Pages: 3

Premium Essay

213sddadsa

...Case Study: Timberland’s Model of Corporate Social Responsibility Yichao Chen 1215615 1. Timberland’s exercise of its corporate power in society should be characterized as Corporate Social Responsibility. CSR means that a corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, communities and environment. According to the article, Timberland exercising its power to affect the people (By launching Path and Service Program to affect their employees to contribute to the society), help the communities (cash and products donations such like giving footwear to schoolchildren in Afghanistan) and try to protect the environment (renew energy sources to reduce carbon). By the actions above, we can say Timberland is using its influence responsibly. 2. The annual Serv-a-Palooza event is a serves event that the company employee volunteers work on some projects to support local New Hampshire communities and areas in Missouri where affected by tornados. The sustainability goals of Timberland are reducing carbon emissions by using renewable energy source. These two programs surely balanced its economic and social responsibilities even though these programs may cost the company some money. The reason is both of these programs increase the reputation of Timberland in the society, especially the communities that surround them and had been helped by them. The reputations Timberland earned will stimulate......

Words: 424 - Pages: 2

Premium Essay

New Belgium Brewing Company: Ethical and Environmental Responsibly

...New Belgium Brewing Company: Ethical and Environmental Responsibly Abstract Although it has since been disproved that Benjamin Franklin once said, “Beer is proof that God loves us, and wants us to be happy,” he is nonetheless given credit for this profound and true statement. New Belgium Brewing has been making people happy since 1991. Along the way they have managed to continuously and profoundly function in the world of profit in a sustainable way making them an outstanding corporate citizen. The core company values that were put in place since the inception of the company stand as a testimony in conjunction with the actions of the company as an exemplary model of sustainability and ethics. New Belgium Brewing New Belgium Brewing (NBB) was born as a commercially sold product in 1991 in the basement of Jeff Lebesch and Kim Jordan. They founded their company based on a set of core company values that promote ethics, ecology, and economics, the foundation of the new sustainable business paradigm. Since its inception, NBB has tackled many environmental issues strategically and as a responsible corporate citizen. The company has made it a part of their culture to save, to conserve, to preserve for posterity, and to leave as little of a carbon footprint as possible in the creation of their product. The company’s focus on environmental issues is so amazing and atypical of the corporate world; it leaves one questioning “Why do they do it?” Are they doing this for......

Words: 1368 - Pages: 6

Premium Essay

“a Satisfactory Justification for Strict Liability in Tort Law Has Yet to Be Found.”

...many claim that a satisfactory justification for strict liability in tort law has yet to be found. This essay will nevertheless argue that this stand is unsupported and untrue: it is nonsensical to call for one unique explanation for this area of the law. The law on strict liability responds to a social demand which should not be reduced to one ‘metatheory’. The first two parts of this essay will be dedicated to the analysis the ‘social and economic benefits’ of strict liability mentioned in Chavez v Southern Pacific Transportation Co. We shall then argue that these justifications are best understood when interrelated with a broader moral justification. I] Social justifications: distributive justice and social harmony The main aim of the law of torts is to compensate victims for the damage they suffer. Strict liability plays a very key role in respect of this. It is important to note that strict liability is generally imposed upon dangerous activities, such as nuclear power production, which society is reluctant to accept. According to the ‘deterrence argument’ strict liability discourages the conduct of risky activities subject to strict liability. The impact of this argument is nevertheless only limited to activities leading to unavoidable damages. However, as we shall see next, a slight variation in this interpretation could constitute a strong claim in favour of strict liability. Fletcher stressed that the non-reciprocal nature of the risk involved in strict......

Words: 3156 - Pages: 13

Premium Essay

Maximizing Profit

...I argue that a business has a responsibility to maximize its profits and that for a business to maximize profits for its shareholders it must at least adopt a pseudo-stakeholder theory of operation representing social responsibility although it has no moral responsibility to be socially responsible. To facilitate this argument, I will use the definitions of those terms as presented by the authors in the book. The stockholders invested their money for the purpose of earning a return on that investment in the form of more money, not in the form of social and moral gratitude from every stakeholder involved with the corporation. Management must take that intention and do their best to see that it is realized. To do so they have to be concerned with the opinions and feelings of all of the stakeholders associated with their companies. If a management team operates a corporation in a way that they show the stakeholders that they are only concerned with the bottom line, then those same stakeholders, and more specifically the consumers, will react to that in negative ways. Theyll look for substitutes to the corporations products or determine that they can live without the products and thereby lower the corporations revenues. If the corporation is not run environmentally efficiently then the towns and cities that are home to the corporations factories and offices will no longer welcome them and may take measures to force the corporation out of their towns. If the corporation habitually...

Words: 1019 - Pages: 5

Free Essay

Athletes as Role Models

...professional athletes should be held accountable as well. In the day and age of Facebook and social media, many professionals have lost their jobs because of actions that they have participated in outside of work. Professional athletes are no different from anyone else, even though they do not have a traditional career. Athletes have an opportunity to do great good with the money and the power that they hold. With this much influence, comes the responsibility to themselves and the public to conduct their day to day activities in an appropriate and law-abiding manner. This is no different than anyone else who has to abide by rules and behaviors of society and if the person cannot do so then they will be given repercussions. Perhaps it is the athleticism that should be looked at with admiration and not the person themselves. The belief in athletes as role models has its pros and cons. These individuals have significant influences on sports, fans (particularly kids), other athletes, and communities. There are two arguments to this issue. The positive aspect of having athletes as role models is that they promote fitness, inspire others to succeed, and participate in teamwork and charity work. However, on the negative side athletes are known to use performance-enhancing drugs and engage in unethical behavior or bad sportsmanship both on and off the playing field or court. The argument for athletes as role models is that their influence on sports encourages......

Words: 1834 - Pages: 8

Premium Essay

Doc. Business Environment

...TWO BUSINESSES ON OUR DOORSTEP Range of different businesses There are many different types of business that you come across as a customer or employee or that you hear about in new stories. We have a looked at range of Businesses such as Partnerships, Franchises, Co- operatives, Charities, Sole Traders, Private Limited Companies, Public Limited Companies and Government departments & agencies. Charities Charities are operated to meet defined needs and not to make profit. However they are usually owned by sole traders as it is on their own business and more over they are not controlled by any other organisation. In additional to this, during their operation the government is not allowed to charge them taxes. Henceforth they were opened by an individual ownership who runs their own business and make sure they earn their own profit. Government department and agencies Obviously with the government department and agencies, they focus on their remit they are given by the government. The government have to monitor the operations of their departments to ensure that the public gets value for money. They also support the unlikely event that one government department goes into debt, and funds from other departments. Partnership To an investigation of a Partnership, it is referred as the arrangement in which parties agree to cooperate to advance their mutual interests. Governmentally recognized partnerships may enjoy special benefits in tax......

Words: 3550 - Pages: 15

Premium Essay

Information

...Unit Name: Business & Finance Ethics Unit Code: BBC1001 Year: 2015 Semester: 2 Location: City Flinders Prepared by: Dr Michelle Fong Welcome Welcome to this unit of study. This Unit Guide provides important information and should be kept as a reference to assist with your studies. This Guide includes information about your reading and resources, independent learning, class activities and assessment tasks. It is recommended that you read this Guide carefully: you will be expected to manage your learning as you work towards successful study. Detailed information and learning resources for this unit have also been provided on the Unit website on WebCT/VU Collaborate which can be reached via the Student Portal at vu.edu.au/student-tools/myvu-student-portal It is important that you access your Unit website regularly. Please also refer to information provided on the Student Portal that supports studying at VU. Acknowledgement of Country We respectfully acknowledge and recognise the traditional owners, their Elders past and present, their descendants and kin as the custodians of this land. Contents Welcome Acknowledgement of Country Introduction to the unit ............................................................................................................................................3 Key staff ............................................................................................................................................................3 Required......

Words: 5756 - Pages: 24

Premium Essay

To What Extent Is Corporate Social Responsibility (Csr) Beneficial to a Company’s Performance?

...CHAN Ching To (UID 3035102223) To what extent is Corporate Social Responsibility (CSR) beneficial to a company’s performance? An analysis of the relationship between CSR and financial soundness, quality of marketing, people management and long-term investment value. Introduction Since the late 1990s, corporate social responsibility (CSR) has been increasingly discussed in the society and it slowly becomes one of the important components in the business world (Jenkins, 2005). McWilliams and Siegel (2006) interpret CSR as ‘situations where the firm goes beyond compliance and engages in “actions that appear to further some social good, beyond the interests of the firm and that which is required by law”’. In general, CSR is believed to, in long-term, enhance business performance and boost employee morale. Also, CSR could be a tool to improve company image and to prevent crises (Weber, 2008). This essay argues that CSR has a positive relationship with a company’s performance, meaning that it brings benefits to corporate performance to a large extent. To measure one’s performance, three key aspects are considered, namely financial soundness, quality of marketing and people management. These three aspects are chosen from the criteria for Britain's Most Admired Companies 2014 (Management Today, 2014). Effects of CSR on Financial Soundness One of the most crucial criteria to determine a company’s performance is by analysing its financial soundness. Common......

Words: 1547 - Pages: 7

Premium Essay

Local Economic Development Partnerships

...“Local Economic Development can only be effective if all actors work in partnership.” Consider the arguments for and against this statement. Introduction With the ongoing discussions on universal development for all for sustainable economic growth, countries and regional bodies are focusing on the drivers for local growth within the different economic spheres. An important group for driving growth is local actors as one of the key stakeholders in this process. Ideally these partners should come from the government, private sector, civil society and community groups. This is to enable inclusion of all stakeholders involved and for collective responsibility. Governments mainly have been under pressure to build or realign institutions to function at local level and to create policies for their stakeholders that are inclusive. For the developed countries, focus is on allowing for bottom-up approaches like the Enterprise Zones and Local Enterprise Partnerships while for developing countries with large informal economies and weak institutions, the approaches vary partly due to failed policies in the past and the slow economic growth. On the international scale, development organisations have been tasked with coming up with better ways of dealing with particular regions characteristics to avoid the ‘one size fits all’ approach that previously existed. This has been deemed to be a more effective way of achieving sustainable growth. (UN Habitat, 2009) However the issue around how...

Words: 1516 - Pages: 7

Premium Essay

Business Strategy

...y with others and how best to use human  resources to meet organizational goals through high levels of performance (motivated, effective and efficient  workers) and competing in the global marketplace. We begin this case by exploring the changing nature of the  workplace; We then explore what is meant by diversity and consider the business case for promoting and managing  diversity within contemporary organizations. Learning objectives: Evaluate diversity and multiculturalism as a source of sustainable competitive advantage and identify the  benefits of diversity for organizations. Case problem: What is meant by diversity and should organizations seek to be diverse? Company  Aramark http://www.aramark.com/ Food ‐ Major Diversified ARAMARK is a leader in professional services, providing award‐winning food services, facilities  management, and uniform and career apparel to health care institutions, universities and  school districts, stadiums and arenas, and businesses around the world. In FORTUNE magazine's  2009 list of "World's Most Admired Companies," ARAMARK was ranked number one in its  industry. ARAMARK seeks to address issues responsibly that matter to its clients, customers,  employees and communities by focusing on employee advocacy, environmental stewardship,  health and wellness, and community involvement. Headquartered in Philadelphia, ARAMARK  has approximately 260,000 employees serving clients in 22 countries. ARAMARK partners with  clients around the world...

Words: 1656 - Pages: 7

Premium Essay

Hilton Hotel Csr and Three Myths

...their own business fields. Competition is high and therefore, companies try to find new ways of value offering as they try to increase customer value and therefore, increase their brand image, gain customer loyalty and eventually and most importantly maximize their profits. In today’s world, many companies attempt to be CSR orientated, or at least pretend to be one. This is because; rate of corporate social responsibility often affects the way consumers perceive any given company. However, some companies still try to get away with their social responsibilities, as those responsibilities are often associated with high costs for the companies. This essay will assess Hilton Hotels Corporations’ approach towards CSR, by reviewing and analyzing few different cases of unethical behavior from the above mentioned corporation. Moreover, such analysis will be done with regard to three different myths CSR. HILTON OVERVIEW Hilton was founded in 1919 and since then it has been a global leader in the hospitality industry. As of 2015, there are more then 4,300 Hilton branded hotels in 94 countries around six continents. Hilton directly owns some of these hotels, they manage some and some are franchised to other companies. It is run by CEO Christopher J. Nassetta. According to the Hilton’s official web site the mission of their strategic giving is to harness their passion and expertise to address the social, economic and sustainability issues that impact Hilton’s business and are......

Words: 1311 - Pages: 6

Premium Essay

Country Notebook

...question with “yes”, that the product optimizes the “common good” or benefits of all constituencies. So for me it is not ethical to sell a product which is mildly effective while customers have no clue what the cream is doing to them. In fact HLL should inform their clients how their technology works and which ingredients they use. If there is clearness, customers have access to any information and the product does not harm people than it is ethical to sell this kind of product. 2. Is it ethical, to exploit cultural norms and values to promote a product? The determination whether exploitation of cultural norms and values to promote a product is ethical or not is guided by the three ethical principles which provide a framework to help a business or market distinguish between right and wrong, determine what ought to be done and properly justify such actions (Cateora et al., 2011, p. 151). These principles are: Utilitarian ethics – this helps to answer the question; does the action optimize the common good or benefits of all constituencies? And who are the pertinent constituencies? Rights of the parties- this probe into the question; does the action respect the rights of the individuals involved? Justice or fairness- this answers the question; does the action respect the canons of justice or fairness to all parties involved? (Cateora et al., 2011, p.151). Using these three basic ethical principles to assess how ethical it is to exploit cultural norms and values to promote a......

Words: 1583 - Pages: 7

Premium Essay

Jetair Ltd. and Contemporary Companies and Securities Law

...firstly the relationship between Jetair Ltd. and JetairNZ Ltd. as a related body corporate and the various duties owed to both companies by their Board of Directors; the duties owed by the Board of Directors to both companies and the body corporate as a whole and the possibility of conflict of interest; the duty of care owed by the Board of Directors to their employees and the company as a whole; and finally the exploration of the remuneration of Jetair Ltd.’s Board of Directors as a reflection of the current financial situation of the company. The argument for and against the pursuit of legal action will be based solely upon relevant legislation and case law; therefore the conclusions drawn will be the recommendation for the employee associations in regards to the pursuit of legal action. Related Bodies Corporate – Holding and Subsidiary Companies Given that conducting business with an Australian-based workforce operations, business proved to be cash-flow effective, but unprofitable – Jetair Ltd. has sought to pursue a differentiated corporate structure. In order to achieve this, Jetair Ltd. established a subsidiary, JetairNZ, in order to gain advantages that were previously unavailable. Incentives for the formation of a subsidiary, foreign or local, are provided for through both the rule of separate entity and limited liability. In the case of Jetair Ltd. the rules listed above provide for the existence of JetairNZ as a separate legal entity (although also functioning......

Words: 2402 - Pages: 10

Premium Essay

Bestbuy

...Date: June 27, 2013 To: Corrin Whiteway, President and CEO, Best Buy Canada From: Emma, Director of Business Development, Best Buy Canada Subject: Arguments to Persuade the City of Red Deer to Allow a Best Buy Store In response to your request for a strategy that we can use for persuading the city council of Red Deer to authorize a Best Buy store, please find below a range of arguments that can be used in a presentation to the municipality next week. Red Deer is a city in central Alberta and it is Alberta’s third most populous urban area after Calgary and Edmonton. According to the 2013 municipal census, the population of Red Deer is now 97,109, which means that it offers a large enough market for a big-box store such as ours to be successful (The City of Red Deer, 2013). The ultimate goal is not only to petition the government to support the opening of Best Buy, but also to educate the mayor, the city council, and the planning commission about our business philosophy. Best Buy is able to make a strong case for receiving permission to establish a store in Red Deer. The evidence that is detailed in this document includes the impact on customers, the impact on employees, and the impact on the local community. Impact on Customers Best Buy is a classic example of a big-box store. These are large retail stores that are almost always located in suburban areas and that feature an extensive amount of floor space, generally more than......

Words: 1101 - Pages: 5