Oreck Company Case Study

Milton Friedman’s shareholder theory of management says that the purpose of a business is to make money for the owner or the stockholders of the business. Friedman says that there is only one social responsibility for the business: to use its resources in order to increase

First thing let us start with a little overview of what Milton Friedman exposed in his article. It seems that the whole point of his essay revolves around one basic statement which clearly says that the only social responsibility of business is to use its resources and engage in activities designed to increase its profits so long it stays within the rules of the game (Milton Friedman, the social responsibility of business is to increase profit).

In the article, “The Social Responsibility of Business Is to Increase Profits,” Friedman states that “businessmen believe that they are defending free enterprise when they proclaim that business is not concerned merely with profit but also with promoting desirable social ends.” This social responsibility is defined as Corporate Social Responsibility (CSR), which is the belief that “corporations owe a greater duty to their communities and stakeholders” by having a “social conscience.” This, among other things, includes being environmentally responsible, contributing to non-profit organizations, and eliminating discrimination.

The ethical issues presented in this case are the different views that each individual has on how the idea of corporate social responsibility (CSR). This dispute is between Mr. Milton Friedman, John Mackey, and T.J. Rodgers; all of which has a different outlook on CSR. The definition of CSR refers to the responsibilities that business has to the society in which it operates and to those actions that a business can be held accountable. Most philosophers have come up with three different types of responsibilities that corporations can be held accountable for. The first and most important of the three is a corporation’s duty to not cause harm. If a corporation can

Christina, that is so true. The sales reps are the face of the company and this plays a very crucial role in building customer loyalty with the company. The clients do not know anything about your company so the sales reps are going to be the first impression of what your company has to offer. So it is vital that the sales reps are knowledgeable on all the company’s products and policies and ensure they are able to follow through on their promises. A good sales rep will listen to the concerns of each client and will try their best to accommodate the customer’s

The expectation that businesses behave responsibly and positively contribute to society all while pursuing their economic goals is one that holds firm through all generations. Stakeholders, both market and nonmarket, expect businesses to be socially responsible. Many companies have responded to this by including this growing expectation as part of their overall business operations. There are companies in existence today whose sole purpose is to socially benefit society alongside businesses who simply combine social benefits with their economic goals as their company mission. These changes in societal expectations and thus company purpose we’ve seen in the business community over time often blurs the line of what it means to be socially

In 1898, through the merger of the midwestern American Biscuit Company, eastern New York Biscuit Company, and the United States Baking Company, Nabisco was established. In 1941 the company finally adopted the name Nabisco which was already a popular nickname for the company, before then it was called N.B.C. The chairman of the N.B.C. was Adolphus Green, who emphasized standardized products, all bakeries had the exact same recipes and standards of production. Through this N.B.C. developed products that could be nationally recognized. All the merchandise is marked with a distinct emblem, an oval with two bars across it. Which Green found in a medieval Italian printers’ mark catalog, which is said to represent the triumph of good over evil. In 1912 the first Oreo was invented, which looked very similar to the one we enjoy today. How did Oreo get its name? Some say it came from the french word for gold “or’ which was the main color of the packaging. Others say it was named from the Greek word for mountains, because of the hill-shaped test version. Others say it was a combination of cream (“re”) and chocolate (the two “o”s) creating o-re-o’s. In 1975 the company invented a new Oreo, the double stuff Oreo. Nabisco continued creating variations of the Oreo, in 1987 fudge covered Oreos, in 1991 halloween Oreos, and in 1995 Christmas Oreos were invented. Since then over 362 billion Oreo cookies have been sold in the United States. Oreo has become the

William Procter, a candle maker, and James Gamble, a soap maker, formed this global and Fortune 500 Corporation in 1837 (corporate profile).  Procter and Gamble (P&G) is headquartered in Cincinnati, Ohio. These two entrepreneurs

Milton Friedman argues that persons may choose to undertake social responsibilities to their communities, churches, or nations, and devote their own incomes to causes that they deem morally worthy. But, he adds, if corporate executives attempt to take such social responsibilities or to direct the corporation’s profits to such personal causes, without approval from the shareholders, then:

Friedman, M. (1970, September 13). The social responsibility of business is to enhance its profits. The New York Times Magazine.

In 2000, Merck began to cooperate with Schering-Plough on several research products and in 2009 acquired their longtime partner in an effort to diversify its products and reach a broader consumer base. With challenges that include rising prices of research and prescription drugs, Merck has managed to forge forward and overcome obstacles. Merck’s survival has been a subject of speculation many times throughout the years; from the 2004 recall of their top selling drug (Vioxx) due to undesirable side effects to the recently curtailed trials of their very promising new anti-clotting drug (Vorapaxar) due to negative trial results. Kenneth Frazier, Merck’ CEO, has also come under heavy criticism due to his unconventional decision not to cut research budgets in order to increase profits. This strategy differs greatly from the usual path and it has cost Merck investor confidence which resulted in lowered stock prices . Although Merck has been subjected to challenges throughout their history they have always managed to stay afloat and maintain their reputation as a leader in healthcare.

Milton Friedman was an American economist, statistician and writer, who had a massive impact on the research agenda of the economics profession. His famous words “the only responsibility of business is to increase its profits” (Friedman, Milton. 1970) led to many controversial debates on whether businesses should have ethics or if profit should be their main goal. Corporate social responsibility has many definitions, as its interpretation is quite loose, so I have chosen one that relates the most to this essay, given by the World Business Council for Sustainable Development, in 2000: “Corporate social

In the last several years, Merck’s individual R &D department has not been able to keep pace with declining revenues from existing products. It is only through Mergers and Acquisitions that Merck has supplemented this income.

John Friedman begins his text with mentioning the misquotation of Milton Friedman’s famous sentences, “There is one and only one social responsibility of business to increase its profits." John Friedman says, “In fact they are misquoting and simplifying just one part of Mr Friedman's more than four decades' old statement. The complete statement is rather broader and brings in a few elements of what is today considered to be integral parts of corporate responsibility -- ethics and integrity.” In the complete statement, Milton Friedman says, “There is one and only one social responsibility of business -- to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to

For a long time now, there has been much debate over the social responsibility of a business. Friedman is one of the most influential