The Primary Goal of a Firm Has Been Held Out to Be Shareholder Wealth Maximization Which Translates to Maximizing Stock Prices. in Light of This Statement, Do You Think Firms Have Any Responsibility to Society?

Adam Smith born 1723-1790 a Scottish philosopher and Economist. Defending the morals of acceptability of pursuing one's self- interest quoted in Document C “Every man is left perfectly free to pursue his own interest in his own way.” Smith gains into the general utility of society knowns as the the invisible hand argument. In the Wealth of Nations smith reveals the interests of merchants and manufacturers were opposed to those of society and had a tendency of pursuing their own interest. Smith wasn’t one to let religious attitude stop his thinking. He believed that more wealth to common people would benefit a nation's economy and society as a whole, stated in the The Wealth of Nation. Smith’s main

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

The role of business in an economy is involved in any type of activity that provides goods, services, or both to consumers in an attempt to earn a profit. Business drives up the standard of living of quality and quantity of goods and services available to a population and contributing to the higher quality of life in which is overall sense of well-being experienced by either an individual or a group. Business also helps raise the standard of living through taxes. However businesses do not only provide the products and services that people acquire, but they as well provide job opportunities that people

The purpose of business is commonly perceived negatively by the general public. Most people believe that businesses are started solely for the purpose of making money for its investors. However, according to Mackey (2013), “business has the potential for a higher purpose; to improve our lives and create sustainable value for all stakeholders of a business”. During the interview Mackey (2013) says that “business creates the goods and services that make our lives better”. At any rate, most people still view business as a necessary evil until more businesses adopt the conscious capitalism philosophy.

Every business has a social responsibility toward society. That means to maximize positive affects and minimize negative affects on the society. Social responsibilities includes economic-to produce goods and services, that society needs at the price, that satisfy both-business and consumers, legal

In 1776, Smith published, “Inquiry into the Nature and Causes of the Wealth of Nations” showing his beliefs on how economies should be run as a best-case scenario. Concurrently, America was at war with Great Britain and established its own government, one that Smith’s ideas in his article possess. Smith later wrote an article called, “Theory of Moral Sentiments” which shows many ideas of Smith. He believed that there should be a system of virtues created for both commercial and noble use. Commercial virtues could be used in the business sense, for self-interest in getting ahead. Noble virtues included ideas such as friendship, compassion, kindness, and love that should be used on a personal but also economic level. These moral theories showed that Smith was for capitalism, but for it to be used with virtues created that show that opportunities can be created by oneself, but also to look at the aspect of being a noble, caring person. Smith, being a philosopher and economist, stated that people cannot judge others without creating bias, but this idea of a personal bias needs to be put away and not thought of when judging others. By doing this, a better, fairer judgment would be created about the person. Smith also believed in a system of economics that used “free-trade”. This idea of free trade would help individuals with creating opportunities to benefit and earn money that can be used to purchase goods. This cycle of earning money and then purchasing goods would help grow the economy, create capital, and create businesses owned by everyday

Adam Smith was one of the major luminaries of the eighteenth century Scottish Enlightenment. His The Wealth of Nations became the bible of nineteenth century liberals, and twentieth century conservatives are similarly animated by his vision of the beneficent results of the free marketplace. Adam Smith had big ideas that included the “Invisible Hand, Trade, & The Division of Labor.” The invisible hand was to help correct the system by the laws that were governed for supply and demand so people can have self-interest. This idea was to help adjust prices and meet the needs of the market because of the invisible hand. The 2nd big idea was trade because whatever is applied to individual will be applied to the national because

Adam Smith portrays his moral character because he could determine moral right promoting the ethics of capitalism. The Philosopher took the stand to debate the practice of mercantilism and monopolies. He believes that the federal government must limit their involvement in individual economic issues, allow free trade and room for competition. Most importantly, Smith justifies that capitalism meant for the proper intention and freedom to run the market. That capitalism will pave the way for wealth through production and

Milton Friedman wrote in his famous 1970’s article in The New York Times Magazine, that “the one and only social responsibility of business, is to increase profits for shareholders.” Milton Friedman's view on business responsibility accentuates the importance of maximizing firm's value. He pointed that the “there is one and only one social responsibility of business –to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engaged in open and free completion without deception or fraud’’ and by taking on the burden of social cost, the business becomes less efficient (Milton Friedman, 1962).

The success of a company depends on relationships with the public such as consumers, suppliers, investors, employees, government and media. Since public relation practitioners are the once who do the actual communication between their organization and its public it is obvious that public relation is a management function.

Business plays a major role within our society. It is a creative and competitive activity that continuously contributes to the shaping of our society. By satisfying the needs and wants people cannot satisfy themselves, businesses improve the quality of life for people and create a higher standard of living.

The theory explains that the value of public relations in organization and society lies in socially responsible managerial decisions and quality organization to public relations. Organisations must behave in ways that solve the problems and satisfy the goals of the stakeholders as well as the management in order to be effective. Good relationship with organisation’s strategic publics is helpful in developing and achieving goals desired by both the organization and its publics, reducing costs of negative publicity, and increasing revenue by providing products and services needed by stakeholders. Practitioners identify publics who are affected by or affect organizational decisions and communicate symmetrically with them to build high quality long term relations.

“Corporate finance theory, teaching and the typically recommended practice at least in the US are all built on the premise that the primary goal of a corporation should be the maximization of shareholder value.”

As the name of the discipline implies, public relations is how an organization builds beneficial relationships with its key stakeholders. With effective communication as the practices’ primary tool, modern day organizations have taken advantage of proficient practitioners to boost exposure of their company and its message across to international audiences.

Companies with extensive responsibilities even argue about the system in pursuing social responsibility of business. According to Ulrich Steger, the company should prioritize the shareholders’ incessant interest but they should also be concerned of their social responsibilities, morals and environmental goals that the public expects them to be. Without a doubt, companies’ primary goal is to earn a profit. Emphasizing on profitability affects the fundamental values in the company, its morality. Companies ignore the ethics just to earn a mountainous income. This often causes extensive repercussions in the companies.