BLaw 210 1nd Edition Lecture 4 Outline of Last Lecture I Divine Command Theory II Ethical Egoism Theory III Utilitarianism IV Categorical Imperative V The Contractarianists and Justice VI Rights Theory VII How we avoid ethical dilemmas Outline of Current Lecture I The Social Responsibility of business II Andrew Carnegie III Milton Friedman PMT DMC IV V R Edward Freeman Henry Ford Dodge v Ford Motor Co VI Shareholder s rights Current Lecture I II The Social Responsibility of business a A duty owed by businesses to act socially responsible in producing and selling goods and services Andrew Carnegie a surplus wealth is a sacred trust which is possessor is bound to administer in his lifetime for the good of the community These 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 IV V VI Milton Friedman PMT DMC a 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 R Edward Freeman a Stakeholders i Employers sponsors investors local community b Who are they c How do we weigh in with them d What is the goal of stakeholder theory Henry Ford Dodge v Ford Motor Co a My ambition is to employ still more men to spread the benefits of this industrial system 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 Shareholder s rights a Shareholders actually have very little control over operations of corporations i Do not even have the right by default to nominate directors b Some empirical evidence suggests that more politically active corporations generate lower returns c Underlying argument is that these corporations suffer from poor corporate governance