Corporate Social Responsiblility Flashcards
What is it?
Should a business’ main concern be economic responsibility (make profit) or social responsibility (to care for employees, customer environment etc)
For Milton Friedman, what should a business’ main concern be?trickle down economics
Profit as this ultimately benefits society as they will be able to employee a large amount of people with good wages, they then have money to spend, so this will boost the economy. Trickle down economics
Adam Smith - do people act for other people?
No they only work for the benefit of themselves, even if they seem to be helping others, it is only out of self interest
For Adam Smith, why would a businessman create a good product?
Not for the benefit of the customers enjoyment, but so people continue buying the products so his business continues to be successful
Why are Friedman and Smith in favour of capitalism?
Humans flourish when they fulfil their own desires in a competitive market place and the weak are cared for because we have the means to do. It benefits us to help them too
Shareholder
Someone who has invested money in the business
Stakeholder
Someone effected by the business, employees or local community
Why would it be beneficial for a shareholder to take a smaller profit?
To invest in better working conditions or pensions
Name a company in which customers and employees share in profits and can vote in company policy
The Co-op
For Friedman, who’s responsibility are social issues?
The governments. Social issues are not a concern for business
Why can a business not do ANYTHING to make a profit
Laws, some laws differ from country to country though.
