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Stakeholders The Topic At Hand Is Whether Essay

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Stakeholders The topic at hand is whether businesses can rely on the premise that profit alone is the end-all be-all of what drives a business and what its endgame should be or whether it should focus at least somewhat on social and corporate responsibility even if it's at the expense of some or many dollars of profit. The author will compare these two disparate viewpoints and offer an overall viewpoint that actually blends the two.

Compare and Contrast

Friedman offers the point that businesses must have a profit to even survive and exist. As such, this drives what the business does, why it does it and how it should do it. The Stone treatise is a counterpoint and it argues that businesses have an obligation and a moral imperative to be stewards of the public good even at the expense of profit. Stone presupposes that firms are mandated and urged to be directed solely by profit and shoots down the presumptions that lead to this while Friedman makes the point that profit should indeed be the main goal.

Taking A Stand

The author of this report would state that, as with most things, the proper place to stand on this spectrum is somewhere in the middle. In this case, that "somewhere" is much closer to Friedman's viewpoint than it is to Stone's. However, Stone is correct in saying that profit should not be the only motive but he is perhaps a bit cynical to insist that it is indeed the "only" motive to some or many firms because...

Even if it's just a hedge related to public relations and other legal issues, any firm that has its mental faculties in order at least consider the social responsibility/PR implications when considering one choice over another. Sometimes this consideration occurs after the fact when it should have been before the fact (or at least deeper into the minutia before the fact) but all firms with any sense do this as a matter default.
Stone's promissory argument makes reference to the fact that shares of a corporation only end up in a given person's hands after a "circuitous" path but Stone's argument itself is circuitous and nonsensical. Any normal investor that invests in a corporation in any way, shape or form at least expects their money to remain flat. Even if the shares do not go up, they might be getting a match of some sort or they may rely on dividends. However, if a stock is about to nosedive, no sane person would hold onto it. Conjoined with that overall goal is the idea that a shareholder expects the firm to do what it takes to glean a profit. That all being said, many investors do take social responsibility and corporate actions that lead to the profit but may hurt or take advantage of others into account. However, others still just want profit which may explain why no other than Michael Moore used to be invested in Halliburton stock…which is quite asinine if one thinks about it (WND, 2005).

Similarly, Stone…

Sources used in this document:
References

Friedman, M. (1970, September 13). The Social Responsibility of Business is to Increase its Profits, by Milton Friedman. University of Colorado Boulder.

Retrieved September 8, 2013, from http://www.colorado.edu/studentgroups / libertarians/issues/friedman-soc-resp-business.html

HuffPoTech. (2013, February 12). Apple CEO Explains Why Apple's Products Are So

Expensive (Sort Of). Breaking News and Opinion on The Huffington Post.
Retrieved September 8, 2013, from http://www.huffingtonpost.com/2013/02/12/apple-ceo-tim-cook-expensive-products_n_2670366.html
WND. (2005, November 1). Michael Moore owns Halliburton!. WND - A Free Press for a Free People. Retrieved September 8, 2013, from http://www.wnd.com/2005/11/33183/
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