Laura Coplai
Liberty University
BUSI 620:B01 – Global Economic Environment
Discussion Board 1 – Part 1
2. What might be the objective of a museum? Of a firm? Do they have the same
objective? Why or why not?
The objective of a museum would be to educate the people who come in to view
what is displayed. For example, the Smithsonian’s mission is “the increase and diffusion
of knowledge” with a vision of “shaping the future by preserving our heritage,
discovering new knowledge, and sharing our resources with the world” (Smithsonian).
The objective of a firm, on the other hand, is “to maximize the wealth or value of the
firm” (Salvatore, 2011, p. 12).
Both firms and museums want to maximize their respective agencies – knowledge
for museums and value for firms. However, the wealth aspect of the objectives is
different. Firms value their wealth with money. Most museums are free to enter because
they are a service for the people to learn, but they will accept any donations for the
upkeep of their building and new displays. Many times, museums will raise funds to help
with their upkeep as well. Museums value their artifacts or the items displayed and the
knowledge that comes with them as their wealth. While both a firm and a museum are
vastly different in their stated objectives, overall they both are looking to maximize their
respective activities.
5. According to Milton Friedman, “Business has only one social responsibility – to
make profits (as long as it stays within the legal and moral rules of the game
established by society). Few trends could so thoroughly undermine the very
foundations of our society as the acceptance by corporate officials of a social
responsibility other than to make as much money for their stockholders as possible.”
Explain why you agree or disagree with such a statement.
I agree with the statement made by Milton Friedman, but with great hesitation.
Businesses do have a social responsibility to society and to their stakeholders to make
profits. While Friedman’s point of view examines businesses that make profits for their
stockholders, a more concurrent view in today’s society looks at the society as a whole
and the stakeholders of the company. “While shareholder value is the critical measure of
success, companies will benefit if CEOs were to articulate the purpose of business as ‘the
efficient provision of goods and services that society wants’” (Krishnan, 2011, p. 32).
Society establishes the legal and moral rules of the game with laws and
precedents. Corporations should follow these to remain in a fair, competitive market.
Many CEOs and managers in companies today should be socially responsible to their
company, employees, customers, community, and environment. This means they must
act ethically and put the interests of society first. However, issues may arise when a law
has not yet been created or when a precedent has not yet been applied. When this
happens, corporate officials should act responsibly and in their stakeholders’ best
interests.
References
Krishnan, V. S. (2011). In defense of social responsibility of business. Mustang Journal
of Business and Ethics, 2, 31-37. Retrieved from
http://search.proquest.com/docview/1265777323?accountid=12085
Salvatore, D. (2011). Managerial economics in a global economy (7th ed.). New York,
NY: Oxford University Press.
Smithsonian. (n.d.) Mission and vision. Retrieved from http://www.si.edu/About/Mission
