COMM 394 Lecture Notes - Rule Utilitarianism, Regulatory Capture, Indifference Curve
Document Summary
This house believes that the primary responsibility of business is to maximize profits . Argue for : transactions mutually beneficial to everyone evolved, competitive market in theory, maximize benefit, everyone in company is benefiting, whether shareholder or ceo, helps economy to grow in a whole, decrease in unemployment, eliminate discrimination, economies of scale. Rebut for : transaction not necessarily beneficial externalities (e. g. fishing company, congestions, especially in long run, better than short run benefits. Investing in company care about company that they own, don"t want to invest in company that scams, even if pays good returns. ** rebuttal, criticize argument, respond, stimulate discussion back and forth. Friedman as long as within rules of the game: because executives are employees (agents) of the owners (shareholders), they have a direct responsibility . Corporate activity that aims to help society but reduces profits: undemocratic spending other people"s money, opportunity cost, acting like civil servants (ie. not politicians)
