The Goal of the Firm

One of the main goals of any organization is to do their flexure operations in a socially responsible manner. oer time there bedevil been differing opinions regarding a corporations social right 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 out that a line of credit primarily seeks to maximize profits in the sideline of maximizing the shareholders wealth. In this sense the basic obligation of a unwavering is to maximize profits with the fiduciary occupation of safeguarding the shareholders interests and it should cut across all environmental blockades to doing this. Milton pointed out that the altogether 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 since prices will go up in direct response to the added production cost, whereas unseasoned 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 assumeing CSR plans have been questioned by various(a) scholars. Companies such as McD onalds have been said to only adopt CSR stra! tegies to distract public direction from ethical questions posed by their business operations. They pursue the programs for the commercialized gain of building and height their reputation only and thusly raising their profit levels, moreover not able to access the societys interest as a whole (McKibben,...If you want to carry a full essay, consecrate it on our website: OrderEssay.net

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