Analyze business obligations

Purpose: In  this project, you will discuss and analyze the arguments for and  against Milton Friedman’s thesis that the only purpose of business is to  make money. You will apply the arguments for and against to a specific  ethical issue that you have previously discussed in a weekly discussion.Identify  ethical issues that arise in domestic and global business environments  using an understanding of ethical concepts and of legal and business  principles.Create a  Word or Rich Text Format (RTF) document that is double-spaced, 12-point  font. The format should be in memo form. The final product will be  between 8-10 pages in length excluding the title page and reference  page. Write clearly and concisely.

You  serve as the assistant to the very recently appointed CEO of a prominent  start-up that is beginning to grow rapidly. The new CEO, Tara Richmond,  is a former general who gained visibility in the military for her  outstanding leadership qualities. Since her arrival, the Board of  Directors has had spirited debates on several proposals that would  increase corporate profits but would work to the disadvantage of some  members of the public as well as other stakeholders. Some members of the  board are arguing that the only obligation the company has is to make  profits for the stockholders. Other members of the board are arguing  that the company has an obligation to the community and to stakeholders  other than just the stockholders.  

Your  boss is baffled by the debate. “When I was in the military, my duties to  others were clearly laid out. Here, I am unsure to whom the company  owes a duty.” She turns to you for advice, requesting that you draft a  memo that explains what the company’s ethical obligations are in  situations like these. She asks you to start with Milton Friedman’s  opinion piece in 1970, arguing that a company’s only ethical  responsibility is to make profits. 

She also  asks you to review a much more recent memo from the Business Roundtable  that takes a more expansive view of the responsibilities of a company.  The Business Roundtable consists of CEOs of Fortune 500 companies, many  of whom are familiar names to her. 

You  should do additional research on arguments for and against Friedman’s  proposition. Using your classroom materials as well as external sources,  respond to the following prompts:   Explain Milton Friedman’s arguments supporting that a company’s only obligation is to make money.

Explain the  arguments contrary to Friedman’s position including where the Business  Roundtable stands as well as other arguments you find in your research.

Using one  of the ethical issues that you posted in classroom discussions,  illustrate for the CEO, how that issue would be resolved using  Friedman’s perspective and how it would be resolved using the  perspective of the Business Roundtable.

Which of these positions do you find most compelling and why?

Your memo should begin with an introduction and end with a conclusion where you make recommendations to the CEO.

This project requires you to do research on UMGC Library Databases or on the Internet.  You are expected to use course material going beyond defining terms.  You are expected to explain the ‘why and how’ of a situation. Avoid  merely making statements but close the loop of the discussion by  explaining how something happens or why something happens,  which focuses on importance and impact. In closing the loop, you will  demonstrate the ability to think clearly and rationally showing an  understanding of the logical connections between the course material and  the question(s) being asked. Using one or two in-text citations from  the course material throughout the entire paper will not earn many  points on the assignment. The support must be relevant and applicable to  the topic being discussed. Points are not earned for mentioning a term  or concept but by clearly and thoroughly explaining or discussing the  question at hand.