BU111 Lecture : Business Ethics and Social Responsibilities everything on the ethics of business and the social responsibility of firms in the community
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Document Summary
Primary function of any business is economic not social: milton freidman (noble prize winner) To produce efficiently and maximize profits in a marketplace regulated by the forces of supply and demand. High profits allow business to expand: provides jobs, income to employees, shareholders, suppliers, provides more tax revenue to government. Money spent on social responsibility lowers shareholder returns. Management has no authority to spend shareholder"s money in this way. If other firm"s don"t engage in socially responsible activities they will have lower costs and be more competitive. It is the government"s responsibility to make social decisions. A more contemporary and emerging view regarding the social responsibilities of business. Suggests that social responsibilities of business includes all of those things advocated by the traditional (economic viewpoint) Four key areas of social responsibilities: responsibility towards the environment, air pollution (co2 emissions, other airborne pollutants, water pollution, land pollution (toxic waste disposal, recycling.
