Note that I am considering only the normative version of the theory, which states how managers ought to behave. Each of these parts is integral to the well-functioning of the organization. He believes that without any of these groups the organization would cease to exist. Contact him at jeff.
Contrarily, Freeman may suggest that Merck go ahead and try to cure river blindness. Harvard Business School Press,7—8. Yes, every organization wants to make profits. Note that these are ethical rights. More essays like this: Oxford University Press,3— Subscriber Unlimited digital content, quarterly magazine, free newsletter, entire archive.
Some authors — for example, see J. In a case such as Merck and Co, Friedman would recommend that Merck not try to cure river blindness. University of Chicago Press, There are also descriptive versions of the stakeholder theory, which describe actual behavior of managers, and instrumental versions, which predict outcomes for example, higher profits if managers behave a certain way.
Blackwell, Get Full Essay Get access to this section to get all help you need with your essay and educational issues. Freeman advises organizations to treat all of these groups with utmost respect and to regard them with equal importance.
Bowie Englewood Cliffs, New Jersey: It is to this version of the normative stakeholder theory that the following description refers.
Note, however, that Post, Preston and Sachs, who take a more instrumental than normative view of stakeholder theory, embrace a wider enumeration of stakeholders, including regulatory authorities, governments and unions.
About the Author H. Stanford University Press, Prentice-Hall,97— Freidman says there is a contract between the executive and the shareholders since the executive is working for the shareholders and the shareholders have a lot of value at risk.
Free Press,30— Merck is a business, and should be mainly concerned with profit and maximizing shareholder value. These two opposing views are crucial for organizations to consider when deciding how to treat the different involved groups.Freeman vs.
Friedman Words | 8 Pages In favor of the Stakeholder theory, Freeman believes that any person or organization that has a “stake” in the business should also play a role of participation in the business’s actions and decisions.
Read this essay on Freeman vs. Friedman. Come browse our large digital warehouse of free sample essays. Get the knowledge you need in order to pass your classes and more. Only at mi-centre.com". Free Essay: Freeman vs.
Friedman In their theories of how a business should operate, R. Edward Freeman and Milton Friedman hold virtually opposite beliefs as. Freeman Vs Friedman Essay Sample.
Freeman and Friedman offering opposing views to answer the question “What is business’s responsibility?” Freeman puts forth what he calls the “stakeholder theory” while Friedman advocates for the “stockholder theory.”.
Free Essay: This paper will have a detailed discussion on the shareholder theory of Milton Friedman and the stakeholder theory of Edward Freeman.
Friedman. Mohamed Diakite Difference between Friedman and Freeman. Friedman states that the purpose of a business is to maximize profits while adhering to law and/5(1).Download