This is the full version of the clips we discussed in class today. There is another video featuring Milton Friedman's views on this blog (follow this link) together with some commentaries on a recent WSJ piece reviving Friedman's thesis. Enjoy it!
James Murtha I agree with Rose when it comes to which theory is better. However, I also think that Freedman’s assertion that Friedman would be a stakeholder theorist in today’s world is true. The only thing that Milton Friedman cares about is the bottom line— that companies provide a profit for their shareholders. Since Friedman has formulated his theory, the world of business has significantly changed. The news and media in today’s society, magnify each responsible action of a company, as well as each small wrongdoing. It only takes one google search to see the latest news about whatever company you’re searching. Therefore, word of wrongdoing surrounding a company travels a lot further than it used to. I think this technological advancement is one of the main reasons that Freeman makes his assertion. People want to invest in companies that are socially responsible, as opposed to companies that aren’t. In today’s age, being socially responsible can almost be considered a prerequisite for success. Socially responsible acts will provide profits for companies if they are done correctly. This outcome can coincide with both Milton Friedman’s theory and Edward Freeman’s theory.
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ReplyDeleteJames Murtha
ReplyDeleteI agree with Rose when it comes to which theory is better. However, I also think that Freedman’s assertion that Friedman would be a stakeholder theorist in today’s world is true. The only thing that Milton Friedman cares about is the bottom line— that companies provide a profit for their shareholders. Since Friedman has formulated his theory, the world of business has significantly changed. The news and media in today’s society, magnify each responsible action of a company, as well as each small wrongdoing. It only takes one google search to see the latest news about whatever company you’re searching. Therefore, word of wrongdoing surrounding a company travels a lot further than it used to. I think this technological advancement is one of the main reasons that Freeman makes his assertion. People want to invest in companies that are socially responsible, as opposed to companies that aren’t. In today’s age, being socially responsible can almost be considered a prerequisite for success. Socially responsible acts will provide profits for companies if they are done correctly. This outcome can coincide with both Milton Friedman’s theory and Edward Freeman’s theory.