Question

Should the corporation have legal and ethical obligations to society beyond promoting the private interests—maximizing profits—of shareholders? Compare Friedman’s critique of the doctrine of social responsibility with Glasbeek’s. Use Garrett and Steinbeck to illustrate these arguments.

Answer 1

Friiedman refers social responsibilty as a dangourous doctrine . Friedman says that scoial responisibilty of busniess is the how to use these resources economically in this sence of generating profit is ethical as long as they generate it without any illegal means or deceptive. He argues about the social responsibilty of busienss is mpore ethical conduct which is not possible in the realtic world situation

Glasbeek on the other hand oppose the doctorine of social responsibilty of friedman . He disaggreed with the ethical justification of capitalism which was given by friedman.He said it provides less freedon and doesnt movivate individuals.

Garrett and steinbeck illustrate these arguments in different manner

In his novel where galt who was an entreprenure who turned the failed railway project in to a profitable venture by his efforts proved that when the business ventures are taken with such intensions than individual as well as the whole society will be beniffited out of this.

Steinback illustration is different in this regard .In his novel the grapes of warth he wrote about the sin which is created by banks. He says every man hates bank what bank does but bank does the same what everyman hates. All in all the social rsposibilty part might be a kind of a myth which is created by the society itself to pretend but in reality is different which cant be ignored.