Business Ethics And Management 2216 Assignment 2 Corporate

Business Ethics Business Management 2216assignment 2 Corporate So

Business Ethics – Business Management 2216 Assignment #2 – Corporate Social Responsibility Instructions : first read the chapter and reading 5-1. The article, Re-thinking the Social Responsibility of Business , examines the view of Friedman, John Mackey, and Rogers and provides their responses to one another in a debate over the social responsibility of business. After reading the article watch the following video clips on each of the three men… John Mackey – Whole Foods TJ Rodgers – Cypress Semiconductor Milton Friedman – Economist Write a 1000 words analysis of the article which: - Compare and contrasts the perspectives of each participant - Relates each perspective to the models of corporate social responsibility as presented in the book - Answers the question—Which participant do you agree with most and why?

Helpful Hints …The purpose of this assignment was to compare/contrast how the three authors view the mission of corporate social responsibility. What ends up happening in every class is that 95% of the students side with one person. I don’t have an issue with this, but it always boils down to them just not liking the other two. Don’t be so quick to judge, there are good and bad arguments to each person. Your job is to dig deeper into what they are saying and the ramifications of their actions.

One more side note…don’t tell me that Whole Food is better because they treat their customers well. The point of the Economic Model of CSR is that you make as much profit as you can. For that to happen you have to treat your customers well by developing great products. Great products will generate sales and make your customers happy.

Paper For Above instruction

Introduction

The debate over the social responsibility of business has been ongoing for decades, centering around contrasting perspectives on the role of companies in society. This paper analyzes the differing views presented by Milton Friedman, John Mackey, and TJ Rodgers, as detailed in the article “Re-thinking the Social Responsibility of Business,” and explores their responses in videos. The discussion relates each perspective to established models of corporate social responsibility (CSR), ultimately assessing which stance resonates most with my understanding of responsible business conduct.

Milton Friedman's Perspective

Milton Friedman, an influential economist, famously articulated a view that emphasizes the primacy of profit maximization within the boundaries of the law. Friedman argued that the primary responsibility of a business is to its shareholders—to generate profits. He believed that engaging in social responsibility initiatives beyond legal and ethical obligations constitutes a form of taxation without representation, diverting resources from shareholders to causes that may not align with the company's core purpose (Friedman, 1970). Friedman’s stance aligns with the classical economic model of CSR, which prioritizes economic efficiency and profit as the primary measures of a firm’s success.

Friedman's perspective is often criticized for neglecting stakeholder interests and broader societal concerns. Nonetheless, it emphasizes the importance of free markets, competition, and the pursuit of profit as drivers of economic growth and societal well-being. His view underscores the idea that businesses best serve society by focusing on their economic functions, leaving social issues to governments and civil society.

John Mackey's Perspective

John Mackey, co-founder and CEO of Whole Foods Market, advocates a stakeholder-oriented view of CSR, emphasizing that a successful business should create value for all stakeholders—customers, employees, suppliers, shareholders, and communities. Mackey argues that integrating social responsibility into core business strategies can lead to sustainable profits and positive societal impacts. In his video, Mackey advocates for “conscious capitalism,” where businesses operate ethically and transparently while pursuing long-term growth (Mackey & Sisodia, 2013).

Mackey’s approach reflects the multi-stakeholder model of CSR, which recognizes that a firm's responsibilities extend beyond shareholders to encompass various groups affected by its operations. Unlike Friedman, who sees profit as the sole goal, Mackey believes that responsible practices—such as fair treatment of workers, environmentally sustainable operations, and honest marketing—are integral to building a resilient, profitable enterprise.

His view aligns with the value-creating CSR model, emphasizing that social responsibility and profitability are mutually reinforcing rather than mutually exclusive. Mackey’s philosophy suggests that caring for stakeholders enhances brand loyalty, employee motivation, and ultimately, profitability.

TJ Rodgers' Perspective

TJ Rodgers, CEO of Cypress Semiconductor, emphasizes innovation and competitiveness within a free-market framework. In his video, Rodgers stresses that firms should focus on developing superior products and technological advancements to secure competitive advantages in the marketplace. His perspective aligns closely with Friedman’s economic view that corporate success should be measured by profitability and market dominance.

Rodgers advocates that the primary responsibility of a business, like Friedman, is to maximize shareholder value through innovation, efficiency, and delivering quality products. He is skeptical of corporate social responsibility initiatives that divert resources from core activities, viewing them as potentially harmful to a company's competitive edge.

This perspective correlates with the instrumental model of CSR, where social initiatives are justified only when they contribute to economic performance. Rodgers’ stance is that a company’s responsibility to society is fulfilled when it creates innovative products that improve lives and generate profits, rather than engaging in broad social activism.

Comparative Analysis of the Perspectives

While Friedman, Mackey, and Rodgers emphasize different facets of corporate responsibility, their views can be positioned along a spectrum from profit-centric to stakeholder-oriented models. Friedman's perspective is the most narrow, focusing strictly on shareholder wealth within legal bounds. Rodgers echoes this stance, emphasizing innovation and market competitiveness as sources of societal benefit, implicitly reinforcing Friedman’s model.

In contrast, Mackey adopts a broader stakeholder approach, asserting that responsible business practices and social contributions are integral to long-term profitability. His view embodies the sustainable CSR model, which recognizes the interconnectedness of societal well-being and business success.

Despite these differences, all three agree that economic performance is crucial. Friedman and Rodgers prioritize profit as the primary goal, emphasizing that social responsibility should not distract from this aim. Mackey, however, contends that social responsibility and profitability are compatible and mutually beneficial when embedded into corporate strategy.

Relating Perspectives to CSR Models

The classical economic model aligns with Friedman’s view, asserting that the primary goal of the business is to maximize profits for shareholders within the bounds of law and ethics (Davis, 1973). This model posits that social issues fall outside the scope of corporate responsibilities, which should be left to governments and non-profit organizations.

The stakeholder model, championed by Mackey, enlarges the scope of CSR to include social and environmental responsibilities, asserting that responsible practices foster long-term shareholder value (Freeman, 1984). This approach reflects the principles of sustainable development, emphasizing ethical considerations and the integration of social good into business strategy.

Rodgers' focus aligns with the instrumental model, which justifies CSR initiatives solely for their potential to improve financial performance through reputation enhancement, innovation, or competitiveness (McWilliams & Siegel, 2001). This pragmatic approach emphasizes that social initiatives are justified only if they directly contribute to corporate success.

Personal Reflection and Conclusion

Of the perspectives analyzed, I find John Mackey’s stakeholder-oriented view most compelling. His emphasis on integrating social responsibility into core business strategies aligns with contemporary understanding that long-term profitability depends on sustainable and ethical practices. The concept of conscious capitalism encourages businesses to operate ethically while generating shareholder value, fostering societal trust and environmental sustainability (Mackey & Sisodia, 2013).

Although Friedman’s strict profit focus is effective within a free-market economy, it often overlooks externalities that can harm society and the environment. Rodgers’ emphasis on innovation as a societal benefit is valid but somewhat limited, as it neglects broader social responsibilities beyond market efficiency. Mackey’s comprehensive approach offers a balanced perspective that prioritizes responsible stewardship without sacrificing profitability.

In conclusion, responsible business practice requires a nuanced understanding that blends economic efficiency with stakeholder engagement. I advocate for Mackey’s model as the most pragmatic and ethically sound approach for contemporary businesses aiming for sustainable success.

References

• Davis, K. (1973). The Case for and Against Business Assumption of Social Responsibilities. Academy of Management Journal, 16(2), 312-322.
• Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Pitman.
• Friedman, M. (1970). The Social Responsibility of Business is to Increase its Profits. The New York Times Magazine.
• McWilliams, A., & Siegel, D. (2001). Corporate Social Responsibility: A Theory of the Firm Perspective. Academy of Management Review, 26(1), 117-127.
• Mackey, J., & Sisodia, R. (2013). Conscious Capitalism: Liberating the Heroic Spirit of Business. Harvard Business Review Press.
• Rogers, T. (n.d.). Video interview. Cypress Semiconductor.
• Mackey, J., & Sisodia, R. (2013). Conscious Capitalism and the Future of Business. Harvard Business Review.
• Friedman, M. (1970). The Social Responsibility of Business is to Increase its Profits. The New York Times Magazine.
• Freeman, R. E. (2004). Business Ethics: Ethical Decision Making & Cases. Pearson.
• Carroll, A. B. (1999). Corporate Social Responsibility: Evolution of a Definitional Framework. Business & Society, 38(3), 268-295.