DOC PREVIEW
OU PHIL 1273 - Stone's Rebuttals

This preview shows page 1 out of 3 pages.

Save
View full document
View full document
Premium Document
Do you want full access? Go Premium and unlock all 3 pages.
Access to all documents
Download any document
Ad free experience
Premium Document
Do you want full access? Go Premium and unlock all 3 pages.
Access to all documents
Download any document
Ad free experience

Unformatted text preview:

PHIL 1273 1st Edition Lecture 24 Outline of Last Lecture I. Ethics in MarketsA. Firms and those affectedB. FriedmanC. Response to Friedman – StoneOutline of Current Lecture I. Ethics in MarketsA. Firms and those affectedB. Stone (Response to Friedman)C. Freeman – Stakeholder TheoryCurrent LectureI. Ethics in MarketsA. Firms and those affected1. Shareholders/stockholders: have a direct financial stake (priority)2. Stakeholders: affected by firm’s actions even if not a party to transactions3. What is owed to each group? What is the moral priority?B. Stone (response to Freidman)1. Considering (in Friedman) that it is wrong for managers to practice social responsibility2. Examines four arguments against social responsibilitya. Rebuts each one (sort of the fourth)b. Says not true that social responsibility is wrong and that it is morally justified3. Promissory Statementa. Management promises shareholders it will act to maximize profitsb. What kind of argument is this?i. Promise establishes a duty, so deontologicalc. Stone’s rebuttali. False premise: no such promiseii. In any event, other (higher/stronger) duties can outweigh promisesiii. Stays within deontological frame4. Agency Argumenta. Friedman: managers act as agents of shareholdersThese 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.b. What kind of argument is this?i. Relationship establishes a duty, so deontologicalc. Stone’s rebuttali. False promise- Managers aren’t really agents- Friedman idealizes the corporationii. Why prioritize agency on behalf of shareholders over othergroups?iii. Stays within deontological frame5. Role Argumenta. Close to “agency” but more plausible because not tied to explicit agreements that were never madeb. What kind of argument is this?i. Role establishes a duty, so deontologicalc. Stone’s rebuttali. Other (higher/stronger) moral obligations might override role-based obligations- Father case (Stone 256)- Stays within a deontological frameii. Shareholders in less danger than others, so managers might have less responsibility toward them- Bringing in utilitarian ideas: appealing to consequences6. “Polestar” Argumenta. Managers get the best results for society if they act to maximize profitsi. “appeal to the interests of the shareholders is not justified on supposed obligations to the shareholders per se, but as a means of charting a straight course toward what is best for the society as a whole” (Stone 256)b. What kind of argument is this?i. Appeal to consequences, so utilitarianc. Stone’s rebuttali. Tricky- Not rejecting argument as much as starting a newone, but saying what he really thinks obscurelyii. Wants a different view of the corporation- Less emphasis on the shareholders- Less priority of profit over social concernsiii. Seems motivated by concerns about effects of corporations on societyC. Freeman – Stakeholder Theory1. Explicitly denies that shareholders have prioritya. Denies that purpose of firm is to create profit for shareholdersb. Denies that moral purpose of managers is to work to that purpose2. Consider his argument and underlying moral view3. Calls standard view “managerial capitalism” (MC)a. “in return for controlling the firm, management vigorously pursues the interests o stockholders. Central to the managerial view of the firm is the idea that management can pursue market transactions with suppliers and customers in an unconstrained manner” (Freeman 264)b. MC false as a matter of law, which imposes various constraintsc. MC false as a matter of economicsi. Supporters of MC claim it gets best results for society- Invisible hand- Utilitarian argumentii. Freeman: three ways unconstrained actions get bad results(Freeman


View Full Document

OU PHIL 1273 - Stone's Rebuttals

Download Stone's Rebuttals
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view Stone's Rebuttals and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Stone's Rebuttals 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?