Identify the roles and responsibilities of corporate players

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Reference no: EM133718976

Discussion Post: Managerial Capitalism vs Shareholder Theory

Part I

The question of the social responsibility of business concerns what kind of reasons managers of corporations should consider when making business decisions for the corporation.

1) Explain the meaning of the phrase "managerial capitalism."
2) Identify the roles and responsibilities of the "corporate players."
3) What is the purpose of separating ownership from management in traditional corporations?

Part II

Stockholder Theory

1) According to Stockholder Theory, a manager of a traditional corporation has an ethical obligation to privilege the interests of the stockholders over the interests of others. Why?

2) How does Friedman define the doctrine of "social responsibilities of business" and why is it unethical for businesses to engage in socially responsible acts?

3) Critics of the Stockholder Theory complain that it is "rife with moral hazard." How so?

Reference no: EM133718976

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