PHL295H1 Lecture : lecture note
Document Summary
Sole responsibility to increase shareholders income --> a bit _____ A business cannot literally have responsibilities b. c. it"s not an actual person. To say a business/company has responsibilities is reallys aying its members has them. Is at most a legal person-- imputing responsibilities to natural persons who make it up. Civil law: the executive is the agent of the shareholders 2. if exec engages in some act of charity or other activity they"re spending shareholders" money not his own. Not authorized to spend corporate money if not for company expenses. 3. if you spend money on socially desirable things The exec that makes this decision is taxing w/out authority. Government are the ones with knowledege regarding public welfare www. notesolution. com. I. e. lowering prices to avoid inflation if done by only one company it would/could completely no affect at all. : spending money on public good is ____ socialism. Friedman treats social responsibilities as types of charitybenevolence.
