Essay about Business and Social Responsibility
The second discussion question posed was, “What is the role of a corporate executive selected by stockholders” (Jennings, 2009, p. 79)? The role of a corporate executive selected by stockholders is to be an agent “serving the interest of his principal” (Friedman, 2007, p. 175). For instance, Friedman (1970) described an agent as one who generally focuses on increasing company profits and executing tasks that will grow the company. Equally important, he mentioned that sometimes companies are established by people whose focus are eleemosynary services (like the Boys and Girls Club or Red Cross) and not for profit generation. Those companies would have a different role for their corporate executives in that the executives would focus on providing Good Samaritan based services.
The third discussion question posed was, “What analogy does Dr. Friedman draw between trade association wages and corporations’ decisions based on social responsibilities” (Jennings, 2009, p. 79)? Friedman (1970) discussed how social responsibilities are useful in mitigating wage restraint cases with trade associations. He explained