REPORTPage2of16 Executive Summary Stakeholders form an important part of any company and contribute in one or another way towards the success of the company. This is the reason why a number of scholars support the notion that the business of the company hasto be undertakenbased onthe interestsofthe stakeholdergroups. However,therearesomescholarswhosupportthenotionthatthe businessesonlyneedtobeconductedforearningprofitsandnotfor undertaking social work. However, both these approaches are quite stringent and even extreme. Hence, there is a need to take a middle route, where these two approaches are adopted in a harmony. Through this report, the different views of scholars in this aspect, has been highlighted,withaparticularreferencetotheworkofFriedmanand Freeman, apart from more unified approaches of Jensen and Boatright. This hasbeencoveredintheliteraturereviewsegment,followingwhich,the ethicaltheories,apartfromthetheoriesofCSRandCSVhavebeen elucidated, where again, a unified approach proves to be the best option for both the business and its stakeholders.
REPORTPage3of16 Contents Introduction.....................................................................................................4 Literature Review.............................................................................................4 Benefits to the Society.....................................................................................7 Justice and Normative Morality Theories.......................................................10 CSR and CSV Theories...................................................................................12 Conclusion and Recommendations................................................................13
REPORTPage4of16 Introduction There is a growing move of the business entities towards ethics, which are deemed as the values and morality of the organization and of the people held by it (Dewey, 2016). The ethics of the company are created from the people who work towards the company and where the ethical policies are drawn keeping in mind, the interests of the stakeholders (Grant, 2016). The race horse metaphor is often applied to the companies, which had resulted in different views being garnered from the academician. There is Friedman on one side, and he providesthat the businesses doand should onlywork towards earning profits for the shareholders. And then there is Freeman on the other side, where he states that the business has to operate in a manner which has ethics at its foundations. The following report covers an analysis of the need for adopting a unified approach of these contrasting views. Literature Review Freeman(2010)providesthatinthematterofbusinessethics,the stakeholdersareconsideredasbeingtheprominentcontributorinthe manner in which the business evolves. However, there are different views whichareadoptedbydifferentscholars,whereonesetstatesthatthe businesses should only focus on wealth creation and the other supports the stakeholder interests. Friedman (1970) supports the former view where he deemsthesocialreasonabilityofthecompanyasonlyworkingtowards increase in company profits. The idea that the business has to work towards promotion of desirable social ends has been discarded by him. He further puts forward that the business only has a social conscience which relates to earning profits. This is supported by the hardcore truth of the businesses only working towards profit earning motive. Hence, as per him, the work of companyisnotundertakenforeliminatingdiscrimination,foravoiding pollution,forincreasingemploymentopportunities,whicharejustsome
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