Module 2

According to Freeman, The Responsibility Principle is compatible with the Separation Fallacy.

False

Corporate executives are not themselves stakeholders.

False

Milton Friedman claims that corporate executives should not try to conform to any ethical standards.

False

Who is most often associated with the classical U.S. view that a corporation's primary purpose is to maximize profits for stockholders?

Milton Friedman

Freeman's Argument from Rights has what as its central claim?

if one person has a right to X, then every person has a right to X

According to Friedman, corporate executives spending corporate funds to aid in some social responsibility, beyond what is required to maintain profits, is like doing what?

imposing taxes

According to Friedman's argument,

individual proprietors probably can't create a monopoly, but any use of their company's money for social obligations still counts as a tax on employees and customers.

Freeman's Argument from Character has what as its central claim?

stakeholder management asks executives to consider the character of their company

Freeman's Argument from Consequences has what as its central claim?

stakeholder management may produce the best consequences overall

According to Milton Friedman in "The Social Responsibility of Business Is to Increase Its Profits," the managers of a company may spend corporate money on charitable enterprises only when:

they are sure that doing so will increase profits.