Running head: Discussion Board One Response
Discussion Board One Response
Robert Rivers
BUSI 620
Liberty University
21 October 2013
Discussion Board One Response
1. What might be the objective of a museum? Of a firm? Do they have the same objective?
Why or why not?
Museums exit to exhibit history and artifacts. There purpose is not to maximize profits nor is it
based on the sale of any particular item. A firm is however, in business to do the exact opposite.
The objective of a firm is to maximize profits as they transform raw materials and services into
sales. Value is important in both businesses and they seek to garner the maximum value in their
respective business avenues. Where one holds its value in profits and stockholders, the other holds
its value in its possessions and importance of its artifacts.
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.
Overall I would have to disagree with the statement. From an economic standpoint, the
profitability of a company is important as it enables so many social functions within any given
community. Profits are the focal point for the executive committee and they carry a responsibility to
stakeholders to maximize the value of the company. Investors thrive on the potential for return on
investment and flock to businesses with positive outlook in their financial statements. Archie Davis
outlines other responsibilities that businesses have which include capital development and paying
taxes . Companies like Target take this a step further and not only cater to the need of their
community financial but with programs and foundations that assist people around the world with
positive development. The problem lies when the pursuit of profits overshadows the responsibility
that a company holds to its community and social influence. When money or the pursuit of it is
your chief goal, it can lead to many unethical decisions (1 Timothy 6:10). We have seen money
hungry executives defunct companies, and ruin the lives are many of its workers by not taking their
responsibility past profits and bottom line. It can be said that if a company moves jobs to a foreign
market the jobs that are created in that company hold some social value. But if these jobs are in
areas where child labor laws do not exist, labor conditions are subpar, and workers are paid sub
standard wages, is that really being responsibility? The foundations of our society cannot be
undermined by extending social responsibilities past dollars and cents. Businesses hold great value
within communities around the world and are positioned to provide the best support to the
community through outreach and education. Businesses are definitely responsible for more than
profits and dividends for to stakeholders.
References
Cooper, D., & Schindler, P. (2011). Business Research Methods. New York, NY: McGraw-Hill
Irwin.
