Ethical Perspectives: Friedman vs. Drucker, Murphy Geraldetta Lovelace Northcentral University Ethical Perspectives: Friedman vs. Drucker, Murphy A review of three articles written by Friedman, Drucker, and Murphy with differing views of business ethics is presented herein. A comparison and contrast of the views presented as well as this writers’ opinion, follows the review. The Social Responsibility of Business is to Increase its Profits by Milton Friedman (1970) In Friedman’s opinion, the purpose of a corporation is to make money for the owners of the corporation and to follow their directives. The term “social responsibility” when applied to a business is incongruous. According to Friedman, “Only people can have responsibilities.
Part A: Analysis Business Model Seagate and Deal Rationale #1: Why is Seagate undertaking this transaction? How suitable is an LBO for a technology firm like Seagate, and what are the potential sources of value creation in the transaction? Motivate your answer. The Seagate management believes that the company needs heavy and intensive that are not feasible if Seagate Inc. remains a public company. Other capital re-organizations alternatives involve significant tax liability and considering the present state with Seagate being a public company, tax liability will result in loss of wealth for the shareholders since it involves corporate taxes as well as personal tax liability.
As a C-corporation the business, not the owner, would be held liable for any financial damages. Any accidents involving employees or customers would be the responsibility of the corporation to settle. Financially speaking incorporating is the best option because as a sole proprietorship the owner is currently paying a much higher tax rate versus the corporate tax rate. With the tax code being different for corporations there is better profit retention and security. The client also mentioned the issue of partnership and the selling of stock in order to expand the company.
If the officials who are to keep the corporations in check are run by the giant companies themselves, the concept of checks and balances can almost be discarded. If the public is informed of what is going on and reacts to the bribing events, then the big companies, who hire the lobbyists, can be forced to alter their mindset by their customers, and the special interest lobbyists can become benefactors for the general
Some of the similarities to a closely held corporation is each shareholder's liability is limited to the amount of their investment. There is also a limited supply of shares for the market, which make these shares less desirable to the market. The legal limit of shares in a S-corporation is 100 shares and in a C-corporation it is unlimited. S-corporations cannot sale their shares on the foreign market since foreigners don't pay individual income taxes. Shareholders vote to becoming a s-corporation and one or more shareholder holding 50 percent or more of the shares can revoke becoming a s-corporation.
Which is the MOST commonly used measure of corporate performance (in terms of profit)? • ROE • ROI • EPS • DPS 4. When a company determines a competency's competitive advantage, Barney refers to this issue as • value • rareness • imitability • organization Final Exam Answers just a click away MGT 498 Final Exam 5. If performance data and activity reports indicate undesirable performance as a result of inappropriate use of the strategic management process, operational managers must • change the strategic management model. • know about it so that they can correct the employee activity.
It makes sense that the government should take actions to stop monopolies from doing the things the Sherman Act makes illegal. Then I read an article by Milton Friedman published during the time of the trial titled “The Business Community's Suicidal Impulse” (which I’m betting you’ve read). He makes a good argument for how enforcing antitrust laws tends to lead the way to regulation of an industry which may hurt competition and cause more harm than good in the long run.
These days the way managers operate and strategize their business policies has taken a stance against the previous operational strategy that a business exists only to make profit without any consideration or regards to anything else in the world as said by the economist Milton Friedman in his essay “deriding the idea that a business had any responsibility other than to maximise its profits within legally and ethically acceptable margins, arguing that ‘a corporate executive is an employee of the owners of the business. A few new theories were introduced in the famous essay written
According to Anup & Chadha (2005), Ethical misconducts often lead to corporate scandals that come with serious consequences e.g. fraud Ethical conduct/ behavior is stated by the Business Dictionary as
In negatively of the government policy is they can block business operations such as finance, marketing, or property and automatically it become risk for 99 Speedmart businesses. The prevailing political environment in any country directly affects the economic environment or performance. Political changes affect greatly small business owners and it quite important for them to know whether the changes in the politics and government policies are supportive or unfavorable to their businesses. Base on the analysis it