Business 2 Business Engagemen

As summarized by Paine (2003), four arguments underlie the shift from the view of Milton Friedman (1972) that wealth maximization is the only true purpose of the firm to the view that organizations have social responsibilities:

1. 1. Risk reduction. Ethical analysis is thought to provide a means of minimizing the risks associated with carelessness, neglect and insensitivity in such areas as human resource policies and product/process safety standards, and lessen company worries about litigation claims.
   2. Organizational integration. Dignity, respect and consideration extended to all levels of an organization are now thought to lead to greater cooperation among functional and technical units throughout the firm, with employees willing to contribute their best ideas and efforts.
   3. Market reputation. Use of the company’s values to shape a firm’s identify is now thought to improve its standing among customers, suppliers and distributors, and result in greater cooperation among the different institutions within the industry structure.
   4. Community reputation. Further use of the company’s values to shape the firm’s identify is also now thought to improve its standing among local residents and national citizens, and result in reduced antagonism from the different institutions in the social/political structure.

1. 1. • Friedman, M. (1970). The social responsibility of business is to increase its profits. New York Times. Retrieved from:http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html
      • Smith, H. Jeff. “The shareholders vs. stakeholders debate.” MIT Sloan Management Review, vol. 44, no. 4, 2003, p. 85+. Academic OneFile, Accessed 8 Dec. 2016. Retrieved from: http://sloanreview.mit.edu/article/the-shareholders-vs-stakeholders-debate/
      •  [ISO 26000: 6.8.7.1]
      • Hosmer, L. T. (2004). The future of business ethics: An optimistic view. Business Ethics Quarterly, 14(4), 781-786.

1. 1. • Paine, L. (2003). Value shift: Why companies must merge social and financial imperatives to achieve superior performance. New York: McGraw-Hill

Submitted Assignment – Formal Paper:

Paine (2003, p. 227) writes, “In the years ahead, we are likely to see continuing calls for companies to be more efficient and more profitable, and at the same time more responsive to their constituencies, more accountable for the impact of their activities, and more respectful of law and generally accepted ethical standards.”

Prepare a short paper (500 words — 750) outlining your position on this concept. Is there an inherent conflict between the pressure to become more efficient and accountable and sustainability, or are sustainable business practices a means toward these goals?  Your papers should be APA formatted and include 2 cited, scholarly peer-reviewed journal articles.