[SMG SM 131] - Final Exam Guide - Comprehensive Notes for the exam (65 pages long!)

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Phyllis Mc Ginnis

Document Summary

Freeman"s issues with friedman: legal reality. Laws have changed over the years requiring companies to take into account interests other than shareholders. Product liability, environmental laws, constituency laws: businesses must take into consideration the community, employees, and environment, economic reality. Free riders: no incentive to clean up pollution because my contribution is so small. Monopoly: hurts consumers, shallow gauge to determine if the business is ethical, going beyond the law and thinking about it"s constituencies. Corporate social responsibility (csr)- it"s all voluntary. People will pay more for products made ethically and punish companies that don"t act ethically (cid:523)won"t do business with them(cid:524) doesn"t matter how much it"s ethically: inattentional blindness- tendency to overlook information that"s right in front produced. All unconscious (not saying that you would intentionally help your friend to get a job: conflict of interest- when you favor those that benefit you.