PHI 2397 Study Guide - Comprehensive Final Exam Guide - Insider Trading, U.S. Securities And Exchange Commission, Trust Law
20 Nov 2018
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=friedman: social responsibility of business is to increase its profits. Focus on profits (business has no responsibilities other than profits) Business taking on csr leads to socialist view not capitalist, free market (self-reg) Managers are agents that are hired to act in best interest of shareholders (make profits) Csr is a political concern, business should not interfere (conform corp from making $) If intere with csr, they be wasting corps/shareholders" money (impose tax) Taxation without representation, ng cause they have to be govt. If want to do csr, managers can do it on their own not with corp (as individuals) Political consequences, managers dont have expertise in social issues. Text: stone, why shouldn"t corporations be responsible? , pp. Promise invalid because it got lost, not direct promise (people put money long ago and got into hands of others)corp never got to refuse" each and every shareholder terms" when change.
