Which of the following is an accurate statement? If business fails to be suffici

Question

Which of the following is an accurate statement?

If business fails to be sufficiently social responsible it is thereby acting immorally too.

A corporation is recognized legal "person" but it is not a moral "person" for the purposes of ethical evaluation of corporate activities.

According to the Friedman view of the corporation, it has no moral or social responsibility, and its only obligation is to make money legally.

The corporation only is obligated morally to its shareholders, and thus owes no moral responsibilities to any other stakeholder groups.

If business fails to be sufficiently social responsible it is thereby acting immorally too.

A corporation is recognized legal "person" but it is not a moral "person" for the purposes of ethical evaluation of corporate activities.

According to the Friedman view of the corporation, it has no moral or social responsibility, and its only obligation is to make money legally.

The corporation only is obligated morally to its shareholders, and thus owes no moral responsibilities to any other stakeholder groups.

Explanation / Answer

The accurate statement for this question is: According to Friedman view of the corporation, it has no moral or social responsibility, and its only obligation is to make money legally.

Friedman also stated that businesses sole purpose was to generate profits for shareholders.

The famous statement by Friedman which was published in New York Times article said that Businesses have only one social responsibility which is to use its resources and engage in activities that increases its profits but within the rules of the game i.e engage in free and open competition without fraud or deception.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.