Mid-term Exam Essay Example | Topics and Well Written Essays - 1250 words

Mid-term Exam - Essay Example een organization and customers or stakeholders in the current business economy would mean creation of new jobs, new products and services for customers, shareholder profit and growth of the economy (Van der Weide 27). Hence, I agree with Johnson’s view. c. Milton Friedman’s approach towards fiduciary duties was more practical and believed that profit maximization is a correct method to be socially responsible as a high-revenue earning company would provides higher benefits to the society through utilitarian work, thereby enhancing social welfare. Edward Freeman, on the other hand, would disagree with Johnson’s approach towards stakeholders. According to Freeman, it is the duty of fiduciary or organization to fulfill all stakeholder benefits, while Johnson has argued that stakeholder theory will not be applicable in practical situation (Johnston 30-40). d. The morals of CSR and stakeholder theory argue that stakeholder’s benefits such as, those of customers, workers and employees, should not be compromised. However, major objective of an organization’s board of director is that of profit maximization, which might compromise stakeholder’s benefits or CSR of the organization; for instance, closing a non-profit company results in unemployed workers at the expense of shareholder’s profit (Freeman and Liedtka 95-98). a. Based on Kelman’s analysis and further critics by known analysts, I disagree with most of the analysis. Nonetheless, Kelman’s analysis of cost and benefit method is right to certain extent. While it is flawed in terms of its applicability, it can still be useful and beneficial in certain areas such as, health and safety (D’Entrà ¨ves 33). b. The sustainability of cost-benefit analysis depends on accurately estimating individual benefits and costs. Inaccurate usage of models, over-reliance on past project’s data and information and subjective impression generates flawed results. Sustainability of the cost benefit analysis can be