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					    Responsibilities
        Brian Burton
Western Washington University
         “A Simple Decision”
• The firm is a leader in a competitive
  industry
• The $5 million is after all projects have
  been included in the budget
• You cannot split the money
• Examples listed are just that
      What Did You Decide?
• Business or society
• The reasons for your decision
• What is of greatest importance?
     The Essential Distinction
• Economic versus social institution
• How managers should act in fulfilling their
  role in society
Is Business Economic or Social?
• The argument for business as an economic
  institution
• The argument for business as a social
  institution
• The real question: How to get the interests
  of the business and the interests of the
  community aligned
            Some Tools to Use
• Types of managerial responsibilities
  –   Economic
  –   Legal
  –   Ethical
  –   Discretionary/Philanthropic
• The stakeholder concept
   Friedman and the Economic
           Institution
• Reliance on the market
• Maximizing profit within the rules of the
  game
• Defining the rules
• Managerial responsibilities?
• Important stakeholders
• What’s good for business is good for the
  community
Drucker and the Social Institution
•   Responsibilities expand
•   Consider what is best for society
•   Reliance on ethics
•   What is ethical?
•   Important stakeholders
•   What’s good for the community is good for
    business
    The Underlying Ideologies
• Friedman
  – free-market capitalism, competition
• Drucker
  – prefers free-market capitalism with different
    decision rules, voluntary cooperation
  – the possibility of government regulation and
    forced cooperation
• Is anything better than the invisible hand?
       Real-World Examples
• Nike in Indonesia
• Olympic and the Cross Cascade Pipeline
  project
• Merck and river blindness

				
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posted:7/28/2011
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