Explain what relationship must exist between shareholders and corporate managers for Friedman’s “taxation argument” against corporate...

Explain what relationship must exist between shareholders and corporate managers for Friedman’s “taxation argument” against corporate social responsibility to work, and explain one reason for believing that such a relationship does not in practice exist.

Expert Solution

The relationship between corporate managers as well the shareholders of such company shall be in a way as to facilitate good communication between them for a better corporate social responsibility.

Corporations should sometimes forgo profits in the interest of solving social problems
- Keep prices down to help fight inflation
- Take the steps to reduce pollution

- Managers are the agents of shareholders and therefore have a fiduciary responsibility to run the business in their interests.
- The proper mechanism for solving social problems must be democratic; CSR is socialism!
- It may be in a company's best interest to help society (because it's good PR), but pretending that it is a matter of moral responsibility is just "window dressing"

keosha answered 1 year ago

Explain what relationship must exist between shareholders andcorporate managers for Friedman’s “taxation argument” againstcorporate...

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