BLaw 210 1nd Edition Lecture 4 Outline of Last Lecture I. Divine Command Theory II. Ethical Egoism TheoryIII. UtilitarianismIV. Categorical ImperativeV. The Contractarianists and JusticeVI. Rights TheoryVII. How we avoid ethical dilemmas Outline of Current Lecture I. The Social Responsibility of businessII. Andrew CarnegieIII. Milton Friedman- PMT/DMCIV. R. Edward FreemanV. Henry Ford Dodge v Ford Motor Co.VI. Shareholder’s rights Current LectureI. The Social Responsibility of businessa. A duty owed by businesses to act socially responsible in producing and selling goods and services II. Andrew Carnegie a. “surplus wealth is a sacred trust which is possessor is bound to administer in his lifetime for the good of the communityThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.III. Milton Friedman- PMT/DMCa. “In a free society there is one and only one social responsibility of business, to use its resources and engage in activities designed to increase its profits as long as it stays within the rules of the game, which is to say, engaged in open and free competition without deception and fraud.” IV. R. Edward Freemana. Stakeholdersi. Employers, sponsors, investors, local communityb. Who are they?c. How do we weigh in with them?d. What is the goal of stakeholder theory? V. Henry Ford Dodge v Ford Motor Co.a. “My ambition is to employ still more men to spread the benefits of this industrialsystem to the greatest number, to help them build up their lives and their homes.To do this, we are putting the greatest share of our profits back in the business” VI. Shareholder’s rightsa. Shareholders actually have very little control over operations of corporationsi. Do not even have the right, by default, to nominate directorsb. Some empirical evidence suggests that more politically active corporations generate lower returnsc. Underlying argument is that these corporations suffer from poor corporate
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