MGT 3031 Lecture Notes - Lecture 2: Milton Friedman, Sarbanes–Oxley Act, Corporate Social Responsibility
Document Summary
Disparate: (society and nature are separated by business) Aims to find win-win-win solutions positive outcomes in each domain also known as the. Doing well by doing good hypothesis 30+ years of empirical research strong emphasis on the business case. Embedded: business is a product of society and nature and cannot succeed if society fails. The social responsibility of business is to increase profits. To do this, business must focus on creating value for its shareholders. Any other strategy for value/wealth creation would be unfair, a violation of trust or futile. In the old, narrow view of capitalism, business contributes to society by making a profit, which supports employment, wages, purchases, investments, and taxes. Conducting business as usual is sufficient social benefit. A firm is largely a self- contained entity, and social or community issues fall outside its proper scope (porter and kramer, 2011, p. 6)
