Bennett would like to propose to the board of directors of Benmarc, Inc., that the corporation distribute one percent of its pre-tax yearly income to feed the poor.To Milton Friedman and others, Bennett's proposal might be considered unethical, because it violates the purpose for which the corporation was established.

Question

Bennett would like to propose to the board of directors of Benmarc, Inc., that the corporation distribute one percent of its pre-tax yearly income to feed the poor.To Milton Friedman and others, Bennett's proposal might be considered unethical, because it violates the purpose for which the corporation was established.

Quizplus · Accepted Answer

Milton Friedman and others with similar views argue that a corporation's primary responsibility is to its shareholders, and any action that does not directly contribute to increasing shareholder value, such as distributing profits for social causes, is considered unethical because it diverts resources from the corporation's primary purpose of generating profit.

Bennett Would Like to Propose to the Board of Directors of Benmarc