COMM 104 Lecture Notes - Lecture 5: List Of Corporate Collapses And Scandals, Business Ethics, Tylenol (Brand)
1 Sep 2016
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In an enormously famous and enormously influential article milton friedman wrote in. 1970 that the sole motive for the corporate manager was to increase the profits of the corporation so as to maximize the return to the shareholders. Friedman s view alternatively referred to as shareholder capitalism or agency theory reflects the orthodox approach to the theory of the corporation prevalent throughout most of the 20th century. Charles handy 2002 suggested that a corporation should have purpose beyond profits making a profit was fine but that it should be a means to a nobler end aka innovation or the improvement of society. Handy was effectively stating that the interest of shareholders were but one concern of the corporation s b of d. There have been increased attention in the media to corporate scandal. Similar studies suggest that corporate executives have among the lowest ethical standards of all professions.
