Milton Friedman’s arguments

 

You serve as the assistant to the very recently appointed CEO of a prominent start-up that is beginning to grow rapidly. The new CEO, Tara Richmond, is a
former general who gained visibility in the military for her outstanding leadership qualities. Since her arrival, the Board of Directors has had spirited debates
on several proposals that would increase corporate profits but would work to the disadvantage of some members of the public as well as other stakeholders.
Some members of the board are arguing that the only obligation the company has is to make profits for the stockholders. Other members of the board are
arguing that the company has an obligation to the community and to stakeholders other than just the stockholders.
Your boss is baffled by the debate. “When I was in the military, my duties to others were clearly laid out. Here, I am unsure to whom the company owes a
duty.” She turns to you for advice, requesting that you draft a memo that explains what the company’s ethical obligations are in situations like these. She asks
you to start with Milton Friedman’s opinion piece in 1970, arguing that a company’s only ethical responsibility is to make profits. That can be found at
http://ezproxy.umgc.edu/login?url=https://www-proquest-com.ezproxy.umgc.edu/newspapers/social-responsibility-business-isincrease/docview/2441921739/se-2?accountid=14580.
She also asks you to review a much more recent memo from the Business Roundtable that takes a more expansive view of the responsibilities of a company.
The Business Roundtable consists of CEOs of Fortune 500 companies, many of whom are familiar names to her. That memo can be found at
https://system.businessroundtable.org/app/uploads/sites/5/2021/02/BRT-Statement-on-the-Purpose-of-a-Corporation-Feburary-2021-compressed.pdf.

Explain Milton Friedman’s arguments supporting that a company’s only obligation is to make money.
Explain the arguments contrary to Friedman’s position including where the Business Roundtable stands as well as other arguments you find in your research.

 

Sample Solution

Friedman introduced the theory in a 1970 essay for The New York Times titled “A Friedman Doctrine: The Social Responsibility of Business is to Increase Its Profits.” In it, he argued that a company has no social responsibility to the public or society; its only responsibility is to its shareholders. The piece remains as polarizing today as it was five decades ago. For some, Friedman`s provocative theory augured a new phase in American economic life where “Greed is Good” and profits are the only real goal of business. Yet many others saw in it a timely capitalist manifesto that clearly outlined the proper role that executives should play in our free market system.

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Section I: INTRODUCTION TO THE STUDY Introduction The country is encountering a basic lack of medical care suppliers, a deficiency that is supposed to increment in the following five years, similarly as the biggest populace in our country’s set of experiences arrives at the age when expanded clinical consideration is essential (Pike, 2002). Staffing of emergency clinics, facilities, and nursing homes is more basic than any time in recent memory as the huge quantities of ‘people born after WW2’s start to understand the requirement for more successive clinical mediation and long haul care. Interest in turning into a medical caretaker has wound down lately, presumably because of the historical backdrop of the extreme and requesting instructive cycle, low compensation, rigid and extended periods of time, and fast ‘wear out’ of those rehearsing in the calling (Wharrad, 2003). A complex oversaw care climate in this country is restricting the dollars accessible to be spent on nursing care. Numerous wellbeing callings, particularly nursing, have the standing of ‘eating their young’ instead of offering viable coaching to develop future medical care suppliers. Because of these elements, the quantity of medical caretakers has diminished and businesses think of themselves as understaffed and going after skilled faculty. Preceding 2001 the downfall had been apparent for a long time (Sadler, 2003). Nursing schools, public pioneers, medical services pioneers and the overall population is impacted by the absence of Registered Nurses (RNs) accessible. As the populace ages, the assumption is that a rising number of RNs will be required just to keep up with the ongoing degree of medical care. What’s more, the flow ecological and political worries of expanding pandemic sickness, event of artificial and cataclysmic events, and expanding dangers of war, requires huge expansions in the medical care labor force (Jefferys, 2001). The public nursing deficiency and elements that increment the interest for expanding the nursing

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