Project 2: Business Obligations
Memorandum
Date: 01 July 2024
Subject: Business Obligations
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, Introduction
Social responsibility is a practice that enables businesses to have a positive impact on their
communities. It can mean maximizing profits or contributing to the community in any other way
(Fernando, 2021). Friedman sees social responsibility as a measure that says it’s because of
stakeholders a business makes a profit. Successful entrepreneurs want to make as much profit as
possible from a venture. Again, his approach is to maximize profit rather than to do what’s best
for the business to be most socially responsible. This argument is based on the assumption that
companies shouldn't spend shareholders' money on long-term benefits that cost more than they
return. If shareholders want to pursue these initiatives themselves, they should be of their own
free will.
The triple-bottom-line approach to social responsibility considers people, profit, and the planet.
This means a business can make a profit while doing something good for the community it
operates in. It has the added advantage of focusing on environmental and social responsibility
thus benefiting the business, employees, customers, and the environment.
A major ethical concern with this approach that has been raised is pollution and environmental
waste which is a global issue. The two positions discuss how they handle social and ethical
issues including pollution. Pollution affects most parts of the world and majorly affects those
who are poor or below the living standard. It has consequences for future generations and plants,
affects water sources, and most importantly the general quality of life. (Brown, 2001).
Summary of Friedman’s Position
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Memorandum
Date: 01 July 2024
Subject: Business Obligations
This study source was downloaded by 100000889787716 from CourseHero.com on 08-26-2024 23:13:14 GMT -05:00
https://www.coursehero.com/file/239088214/BMGT-496-Project-2-Final-courseherodocx/
, Introduction
Social responsibility is a practice that enables businesses to have a positive impact on their
communities. It can mean maximizing profits or contributing to the community in any other way
(Fernando, 2021). Friedman sees social responsibility as a measure that says it’s because of
stakeholders a business makes a profit. Successful entrepreneurs want to make as much profit as
possible from a venture. Again, his approach is to maximize profit rather than to do what’s best
for the business to be most socially responsible. This argument is based on the assumption that
companies shouldn't spend shareholders' money on long-term benefits that cost more than they
return. If shareholders want to pursue these initiatives themselves, they should be of their own
free will.
The triple-bottom-line approach to social responsibility considers people, profit, and the planet.
This means a business can make a profit while doing something good for the community it
operates in. It has the added advantage of focusing on environmental and social responsibility
thus benefiting the business, employees, customers, and the environment.
A major ethical concern with this approach that has been raised is pollution and environmental
waste which is a global issue. The two positions discuss how they handle social and ethical
issues including pollution. Pollution affects most parts of the world and majorly affects those
who are poor or below the living standard. It has consequences for future generations and plants,
affects water sources, and most importantly the general quality of life. (Brown, 2001).
Summary of Friedman’s Position
This study source was downloaded by 100000889787716 from CourseHero.com on 08-26-2024 23:13:14 GMT -05:00
https://www.coursehero.com/file/239088214/BMGT-496-Project-2-Final-courseherodocx/
