SMG SM 131 Study Guide - Midterm Guide: Corporate Personhood, Gun Safety, Market Failure

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Kabrina Chang

Document Summary

Milton friedman- businesses don"t need to have a social conscience; it"s fine to be socially conscience if it helps the bottom line; must be following laws. Ed freeman- corporation has a duty to the stakeholders besides shareholders. Jennings- rain-forest chic- executives will follow the money, political issues; Porter- creating shared value, tackle social issue in business model itself. Managerial capitalism- (friedman)company owes a duty to shareholders; increase profits; companies must abide my laws; government"s role is to be. Stakeholder theory- (freeman) believes employees, creditors, suppliers, customers, communities, and shareholders all contribute to the success of the corporation and the business/ corporation has responsibilities to them. Walmart is a microcosm for the role of business. Founded 1962 by walton, started to trade in 1970 & he made employees partners. 11000 units- 474 billion means shareholders care what happen: bankers, suppliers, competition, potentials. In 2007 started to provide cell service to rural customers (saw niche)