Respond to Critical Thinking and Discussion Question 6 in Chapter 5.
question:A manager from a developing country is overseeing a multinational’s operations in a country where drug trafficking and lawlessness are rife. One day, a representative of a local “big man” approaches the manager and asks for a “donation” to help the big man provide housing for the poor. The representative tells the manager that in return for the donation, the big man will make sure that the manager has a productive stay in his country. No threats are made, but the manager is well aware that the big man heads a criminal organization that is engaged in drug trafficking. He also knows that the big man does indeed help the poor in the rundown neighborhood of the city where he was born. What should the manager do?
To successfully complete this discussion board, the student is to make two postings. The postings are to be made early enough to allow for comments from other students.
First posing: Your initial response to the discussion board questions.
Second posting: Response to another student’s initial response to the discussion board questions
. another student’s initial response :Milton Friedman argued that corporate social responsibility should not exist because companies must serve and make money for their stakeholders. Friedman was clear that he believed that companies had a fiduciary duty to shareholders/owners to maximize profits and make as much money as possible for shareholders/owners. On the contrary, Joseph Hart takes the opposite view. 'profitability is no longer enough,' Mr. Hart said. It must also serve society and its well-being. I find hart more convincing than Friedman. Friedman ignored the impact of humanism on capitalism. Today, corporate social responsibility is crucial. A company that is observed by shareholders, employees, and customers to engage in social good activities is likely to gain intangible benefits from its activities. Benefits include improved public relations and employee engagement. While these benefits are difficult to directly relate to specific corporate social responsibility plans and quantify their financial returns, research shows that their impact on margins is real. I agree with Friedman that, from an investor's perspective, the primary purpose of a business is to maximize profits. The company's assets belong to investors, and management has a clear responsibility to manage these assets responsibly. Friedman, however, had a very narrow view. Being accountable to the community does not have to come at the expense of neglecting its responsibilities to investors. Neither; It could be one or the other. Balancing the interests of all stakeholders is achievable and can increase investors' profits and social responsibilities. Therefore, enterprises should undertake social responsibilities while making profits for their stakeholders, namely shareholders, which is more conducive to the development of enterprises and the realization of profits.
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