Noted and often quoted 20th century economist Milton Friedman, who espoused the virtues of free market capitalism, held the view and wrote widely that the main and supreme obligation of senior management in a business organization is to maximize profits and shareholder value. In his opinion, devoting resources and time to this project was of the utmost importance and leads to a well-established quantity and quality value. His philosophy was more in line with social commitment, which is why he was an ardent advocate of extreme deregulation. Another economics professor named R. Edward Freeman offers a more contemporary and broader approach to business. Almost 40 years after Friedman, Freeman asserts that in today’s world it is imperative that executives manage broadly with great prudence and strategy, and thus find a balance that best return in re The ability to effectively balance the interests of all parties is one of the keys to ensuring smooth operations and ensuring compliance. A free man’s philosophy is neglected in approaching social care, which incorporates bureaucratic social goals into the equation. In the spirit of the latter theorist, here are the paling norms and the obligations that the appropriate stall owes to them.
Stockholders of publicly traded companies and owners of private companies expect to receive value for their equity in company /a>. Management should regularly provide information to these entities in the form of financial reports and details of product or service offerings. Suppliers must be given the opportunity to provide the best deals and be well informed in advance where orders have been placed or orders will no longer be requested. Loan institutions that supply business capital, the principle of the loan must be restored in full with the interest for the agreed period, as agreed in the agreements. Firms must comply with the rules and regulations set by the government and face criminal penalties and civil penalties if found. it is against any domestic or foreign laws. Management must ensure that workers carry out activities in suitable environments and negotiate in good faith with union representatives. Consumers have the right to buy products and services that do not pose inherent risks or threats to physical and mental well-being. according to negligence, malfunction, lack of quality, and the like. A firm must have a code of ethics that respects the rights of its competitors without obstructing, defaming, or stealing from the firm. The natural environment and the inhabitants of the regions (including animals, plants and people) where the company carries out business activities must be protected from potential practices that endanger the environment, health, or unnecessary health risks.
Together, these services to the owners, when they are effectively organized and executed, make a profit that is saved, attracting the highest talent, who wants to work, who wants to enrich every being that comes between. I agree with Freeman that when a company benefits from a direct effort to promote social justice and equity, the organization is in built on a more solid ethical foundation.
