The Goal of the Firm

One of the main goals of any organization is to do their fold operations in a socially responsible manner. oer time there bedevil been differing opinions regarding a corporations social office or CSR. The main point of controversy is often on who the organization primarily seeks to serve and with what means to an end. Milton Friedman pointed egress that a line of credit primarily seeks to maximize profits in the sideline of maximizing the shareholders wealth. In this sense the basic accountability of a soused is to maximize profits with the fiduciary responsibility of safeguarding the shareholders interests and it should cut across all environmental blockades to doing this. Milton pointed out that the barely responsibility of business was to maximize shareholders wealth, and do business in an open and detached competition honestly and with no deception. Friedman pointed out that taking on the responsibility of social cost makes a business receive less efficient sinc e prices will go up in direct response to the added production cost, whereas unexampled business activities and explore are postponed since resources are diverted elsewhere. By deciding to give chase social responsibilities, a firm may compromise on their profitability and as a result cut the shareholders in the profits they receive.

Therefore a firms only responsibility is to its shareholders (Friedman, 1970). In this sense Milton only looks at the economic and the legal responsibilities of a business otherwise referred to as Must-Dos and Have-Tos by Archie Carroll. The motives of some companies in embroiling C SR plans have been questioned by conglomera! te scholars. Companies such as McDonalds have been said to only adopt CSR strategies to distract public direction from ethical questions posed by their business operations. They pursue the programs for the commercialized gain of building and raising their reputation only and thusly raising their profit levels, unless not able to access the societys interest as a whole (McKibben,...If you want to carry a full essay, erect it on our website: BestEssayCheap.com

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