Which of the following statements from Friedman can best be used to argue that if Friedman's arguments are interpreted in light of today's increased societal, customer, employee, financial- market, regulatory, and shareholder expectations and demands for better social performance, then the social responsibility of business is not just to increase profits, but to do so while also achieving acceptable levels of social performance? O This is the basic reason why the doctrine of "social responsibility involves the acceptance of the socialist view that political mechanisms, not market mechanisms, are the appropriate way to determine the allocation of scarce resources to alternative uses. O Here the businessman-self-selected or appointed directly or indirectly by stockholders-is to be simultaneously legislator, executive and, jurist. He is to decide whom to tax by how much and for what purpose, and he is to spend the proceeds-all this guided only by general exhortations from on high to restrain inflation, improve the environment, fight poverty and so on and on. O A corporation is an artificial person and in this sense may have artificial responsibilities, but "business" as a whole cannot be said to have responsibilities, even in this vague sense. O NA O The stockholders or the customers or the employees could separately spend their own money on the particular action if they wished to do so. The executive is exercising a distinct "social responsibility," rather than serving as an agent of the stockholders or the customers or the employees, only if he spends the money in a different way than they would have spent it. O The political principle that underlies the political mechanism is conformity. The individual must serve a more general social interest-whether that be determined by a church or a dictator or a majority. The individual may have a vote and say in what is to be done, but if he is overruled, he must conform. It is appropriate for some to require others to contribute to a general social purpose whether they wish to or not. O The difficulty of exercising "social responsibility" illustrates, of course, the great virtue of private competitive enterprise-it forces people to be responsible for their own actions and makes it difficult for them to "exploit" other people for either selfish or unselfish purposes. They can do good-but only at their own expense.

Which of the following statements from Friedman can best be used to argue that if Friedman's arguments are interpreted in light of today's increased societal, customer, employee, financial- market, regulatory, and shareholder expectations and demands for better social performance, then the social responsibility of business is not just to increase profits, but to do so while also achieving acceptable levels of social performance? O This is the basic reason why the doctrine of "social responsibility involves the acceptance of the socialist view that political mechanisms, not market mechanisms, are the appropriate way to determine the allocation of scarce resources to alternative uses. O Here the businessman-self-selected or appointed directly or indirectly by stockholders-is to be simultaneously legislator, executive and, jurist. He is to decide whom to tax by how much and for what purpose, and he is to spend the proceeds-all this guided only by general exhortations from on high to restrain inflation, improve the environment, fight poverty and so on and on. O A corporation is an artificial person and in this sense may have artificial responsibilities, but "business" as a whole cannot be said to have responsibilities, even in this vague sense. O NA O The stockholders or the customers or the employees could separately spend their own money on the particular action if they wished to do so. The executive is exercising a distinct "social responsibility," rather than serving as an agent of the stockholders or the customers or the employees, only if he spends the money in a different way than they would have spent it. O The political principle that underlies the political mechanism is conformity. The individual must serve a more general social interest-whether that be determined by a church or a dictator or a majority. The individual may have a vote and say in what is to be done, but if he is overruled, he must conform. It is appropriate for some to require others to contribute to a general social purpose whether they wish to or not. O The difficulty of exercising "social responsibility" illustrates, of course, the great virtue of private competitive enterprise-it forces people to be responsible for their own actions and makes it difficult for them to "exploit" other people for either selfish or unselfish purposes. They can do good-but only at their own expense.

Foundations of Business - Standalone book (MindTap Course List)

4th Edition

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter16: Mastering Financial Management

Section: Chapter Questions

Problem 1DQ

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