Capitalist Economies

Question 1

1) ANSWER THIS QUESTION: The starting point of Friedman’s argument critiquing CSR is the fact that business executives act as the trustees of the corporate owners; they have not been hired by society or stakeholder groups, but are the firm owners’ agents that manage the day-to-day operations of the business for the benefit and in the interest of the owners. Friedman’s premise is a principled insistence on shareholder primacy. In other words, putting shareholders, or the firm owners, first is not an abrogation of moral responsibility in capitalist economies, but an affirmation of it. Do you agree with this statement? If so, why? If not, why not? (2 pages)
2) Do you agree with Gerald Davis’s assessment that the corporation is no longer the most efficient / effective way to organize the production of goods and services? Explain your answer. (2 pages)

Question 2

Reflection
Write a review of your learning from learning unit 1 to 3, reflecting on what you have learnt in each of the three learning units.
For each learning unit you need to do the following:

•  Explain what the learning unit is about;
•  Explain how the knowledge that you have gained will benefit you:

•  Personally; and
•  In your career.