Phil business

1. A) Why does Milton Friedman think that the corporate executive who exercises “Social Responsibility” is “imposing taxes” and who does he think they are imposing taxes on? Explain R. Edward Freeman’s 2 arguments – From principle and from consequences – against the view that corporate executives (or owners) have social responsibilities in a free-enterprise system. B) Explain R. Edward Freeman’s legal and economic arguments for why the stockholder theory of corporate responsibility should be replaced with the stakeholder theory of corporate responsibility. According to Freeman, What is “the stakeholder theory of the firm”, who are the relevant stakeholders, and why are they, stakeholders? C)Milton Friedman thinks that those who advocate “social responsibilities of business in a free-enterprise system” are “preaching pure and adulterated socialism”, while R. Edward Freeman claims that the stakeholder theory of corporate responsibility “can revitalize the concept of managerial capitalism” Who is right? Are these two views compatible, or are they inherently opposed to one another? Explain your view.

Sample Solution