Mid-term Exam Essay Example | Topics and Well Written Essays - 1250 words

Mid-term Exam - Essay Exampleeen organization and customers or stakeholders in the current business economy would mean creation of bracing jobs, new products and services for customers, shareholder derive and growth of the economy (Van der Weide 27). Hence, I agree with Johnsons view.c. Milton Friedmans approach towards fiduciary duties was more practical and believed that profit maximization is a correct method to be socially responsible as a high-revenue earning company would provides higher benefits to the society through utilitarian work, thereby enhancing social welfare. Edward Freeman, on the other hand, would protest with Johnsons approach towards stakeholders. According to Freeman, it is the duty of fiduciary or organization to fulfill all stakeholder benefits, while Johnson has argued that stakeholder guess will not be applicable in practical situation (Johnston 30-40).d. The morals of CSR and stakeholder theory argue that stakeholders benefits such as, those of customer s, workers and employees, should not be compromised. However, major objective of an organizations board of director is that of profit maximization, which might compromise stakeholders benefits or CSR of the organization for instance, closing a non-profit company results in unemployed workers at the expense of shareholders profit (Freeman and Liedtka 95-98).a. Based on Kelmans analysis and further critics by known analysts, I disagree with most of the analysis. Nonetheless, Kelmans analysis of cost and benefit method is right to certain extent. While it is flawed in terms of its applicability, it can still be useful and beneficial in certain areas such as, health and safety (DEntrves 33).b. The sustainability of cost-benefit analysis depends on accurately estimating individual benefits and costs. Inaccurate usage of models, over-reliance on ultimo projects data and information and subjective impression generates flawed results. Sustainability of the cost benefit analysis can be