PHIL 322 Lecture Notes - Lecture 15: Stakeholder Theory, Strawperson

• School: University of Arizona
• Department: Philosophy Main
• Course: PHIL 322
• Professor: ALL

Document Summary

Spots objections to shareholder value 1. law doesn"t recognize shareholders as owners 2. shareholders are heterogenous and have diverse interests 3. maximizing share value can be and for the company an the economy. Just because you own shares doesn"t mean you are an owner, you have very limited power. Friedman business managers should think of them because they are part owners if the business, typically owners of business wants their managers to use profits to maximize value, business managers are all owed to owners of business. Stakeholder worries about local community, suppliers, buyers etc. When violate law/morality it will hurt your profits. Freeman claims friedman would be a stockholder theorist if it were today. Poleton case shareholder - gm would save 120 million dollars by building outside of detroit. But - stakeholder says they should build in detroit because if not it would put a lot of people out of work.