M 3/11 Friedman (EIB 33-38); Freeman (EIB 38-48); Case Study: McCoy (EIB 262-268)

Topic: Corporate Social Responsibility

1. According to Friedman, what is unjust about a corporate executive making decisions based on considerations of social justice?

2. According to Freeman, who are the stakeholders in the modern corporation, and what does each stakeholder contribute to and get in return from the corporation?

3. What are the legal and economic reasons that Freeman cites as evidence for a shift from the stockholder theory to the stakeholder one?