Marketplace Ethics, Part 2
25th July 2005
In a previous post, I suggested that companies like Walmart could be acting unethically in their pursuit of the almighty bottom-line-dollar-profit margins. Is it always wrong to strive for profit? Much earlier on, I commented briefly on the two main theories of the corporation.
One champions the drive towards profitability. In fact, according to Milton Friedman, there is no other obligation for the corporation but to make money for its owners (shareholders). But that doesn’t mean it couldn’t have any social agenda, as long as it is only a means to increase its profitability. If acting in a humanitarian or charitable manner allows it to increase its profile in the community so as to win more business ultimately, it is fulfilling its role as a wealth-making machine for its shareholders
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