Wednesday, May 6, 2020

Is Profit the Only Business of Business - 3287 Words

It is an ageless discussion on what the corporate social responsibility is for managers. Two models that discuss Corporate Social Responsibility are the Shareholder Model and stakeholder Models. The goal of this paper is to discuss these models, the general principals of corporate social responsibility, and end with some concluding thoughts. It is an ageless discussion on what the corporate social responsibility is for managers. Two models that discuss Corporate Social Responsibility are the Shareholder Model and stakeholder Models. The goal of this paper is to discuss these models, the general principals of corporate social responsibility, and end with some concluding thoughts. Stakeholder Stakeholder Shareholder Model†¦show more content†¦The stakeholder theory looks at a firm as a series of groups with different relationships spread among the corporation. A stakeholder could be an internal organizational member, such as an employee, or an external, member; such as a customer or supplier Stakeholders has the potential to influence the company through words, deeds, and actions (Schneider, 2002). The stakeholder theory asks two questions. First, what is the position of the firm? By asking the firm has to articulate the send of value they create, and what’s in it for their core stakeholder. The second question is what responsibilities does management have to stakeholders. This question reflects what the business’ true intentions are, what they want and who they are (Freeman Wick, Parmer, 2004). Using the stakeholder model, a firm focuses on more aspects than just profit. It takes a look at all the factors that go into being a socially responsible company, a nd utilizes them. This can result in better public relations, quality relationships with suppliers, lower staff turnover, and. more favorable reporting. By this theory, these aspects can only be achieved if the firm completely commits to the theory. There is a growing importance by society that businesses act ethically. If a more open market, and globalization on the rise,Show MoreRelatedAre Profits The Only Business Of Business?1523 Words   |  7 PagesAre profits the only Business of Business? What is the corporation’s social responsibility? Many might say the main idea is that a corporation must go further than carrying out their basic function of purely making profits. A corporation must create wealth in ways that avoid under minding society, and instead enrich the society it operates in. The term â€Å"corporate social responsibility† has been deï ¬ ned in numerous ways; from the constricted economic perception of increasing stockholder wealth (FriedmanRead MoreEssay on Are Profits the Only Business of Business?4153 Words   |  17 PagesMGMT 570 ISSUE PAPER ARE PROFITS THE ONLY BUSINESS OF BUSINESS? CONSUMER NOTIFICATION AND PRODUCT RECALL BY KOLAWOLE OLAYINKA 03/30/2013 ARE PROFITS THE ONLY BUSINESS OF BUSINESS? Supply and demand is at the root of everything, where exchange of goods and services is involved between producers and consumers for mutual benefits. These mutual benefits involve an exchange that provides value to the consumer and profits to the producer. It is not at all farfetched to think of these as basicallyRead MoreDo you agree with Milton Friedman’s (1970) claim that :  « the only responsibility of business is to increase its profits  » ?2913 Words   |  12 Pageswith Milton Friedman’s (1970) claim that  :  «Ã‚  the only responsibility of business is to increase its profits  Ã‚ »Ã‚  ? Milton Friedman was an American economist, statistician and writer, who had a massive impact on the research agenda of the economics profession. 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It also encourages them to improve on what they produce such as the quality and how they produce the product to meet the demand in the future. For example Apple, not only did they improve on the software they use but also the quality of the phone. However a firm lacking in entrepreneurship skills would risk being forgotten if they f ail to make the right assumptionRead MoreBusiness Accounting1359 Words   |  6 PagesUnit 5 Business Accounting P5 Introduction In this assignment I will be using the profit and loss accounts and balance sheet for SIGNature s business to work out the Profitability, Liquidity and Efficiency Ratios. Profitability Gross profit Percentage sales Gross Profit Sales Turnover Ãâ€"100 244200 444000 Ãâ€"100=53% Net Profit Percentage Net ProfitSales turnoverÃâ€"100 73960444000Ãâ€"100=16.66% Return on Capital Employed (ROCE) Net Profit before interest and taxCapital EmployedÃâ€"100 73960149160Ãâ€"100=49Read MoreBusiness Ethics : Ethics And Business943 Words   |  4 Pagesdiscussions in Business is Ethics. Some people believe that the decisions businesses make in interest of the business has no place in ethics and that they are essentially amoral. These businesses believe that their main objective is to simply make a profit and that it does not affect the success of the business. Whereas some businesses believe that they have to take ethics into consideration, in order for their business to be a success. Richard T. De George (1999) states that ethics and business do not

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