Unit 5\ Flashcards
Milton Friedman
Defender of stockholder theory (The Social Responsibility of Business is to Increase its Profits)
Stakeholder theory
mangers have a responsibility to all those who have a stake in the company.
Six groups of stakeholders
(Stakeholders include six groups - Owners, Managers, Employees, Customers, Suppliers, and the Local Community.)
Kantian Capitalism
Freeman is heavily inspired by Kant and his principle of respect for persons, and has referred to stakeholder theory as “Kantian capitalism.”
Edward Freeman
Stakeholder Theory
Malden Mills
This case is about a business owner, Aaron Feuerstein, who did all he could to make a quality product, treat his workers well, and save their jobs. Yet he was unable to prevail against fire and market forces. Was he too ethical for his own good, or a moral hero unable to overcome misfortune?
Norman Bowie
Bowie’s article is an attempt at mediation and synthesis between Stockholder and Stakeholder theories.
Hedonic Paradox
the more we consciously seek happiness, the less likely we are to achieve it. Rather happiness is a by-product of worthwhile activities and fulfilling personal relationships.
Profit-seeking paradox
the more we single-mindedly focus on obtaining profits, the less likely we are the achieve them.
Abstract Greed
greed without desire for what money can buy, but rather a brainwashed sense that one ought to maximize income, not to obtain any particular luxury, but simply as an unquestioned goal.
Robert Solomon
Abstract greed
Enlightened Friedmanism
To protect long-term profits, the enlightened manager must be concerned with the health, safety, and family needs
Eichmannism
the tendency of people in large organizations to abdicate responsibility and simply go along with those in charge.
Hannah Arnendt
Wrote about Eichmannism
Milgram Experiment
Milgram Experiment upheld Arendt’s controversial insight that “in certain circumstances the most ordinary decent person can become a criminal.”
