Business & Profits
What is the primary goal of most businesses?
What is "profit maximization"
What is it called when businesses focus on impacts beyond just financial profit?
What is "corporate social responsibility."
Who argues that the main responsibility of business is to increase profits?
Who is "Milton Friedman."
What does Friedman believe social responsibility activities should be left to?
what are "individuals and the government, not corporations."
Who is more likely to advocate for long-term, sustainable practices over immediate profits?
Who are "Bruno Roche and Jay Jakub."
Who are considered the main beneficiaries when a business is focused on profit?
What is "Shareholders."
Name one type of “capital” that businesses can consider in addition to financial capital.
What is "Social capital," "human capital," or "environmental capital."
Who believes that businesses should consider multiple forms of capital for broader societal health?
Who is "Bruno Roche" or "Jay Jakub."
According to Roche and Jakub, what is a potential benefit for businesses that invest in social or environmental capital?
What is "Increased brand loyalty and long-term customer trust."
According to Friedman, what is the danger of businesses prioritizing long-term societal goals over short-term profits?
What is "inefficiencies and reduced shareholder value."
What is a common argument against businesses spending money on social issues if it doesn’t improve profits?
What is "misuse of company resources"
What is "inefficient allocation of resources"
What is one goal of a business model that considers multiple types of capital?
What is "sustainable and balanced growth."
How do Friedman's and Roche/Jakub's views differ on the role of a business in society?
Friedman focuses on profit maximization for shareholders, while Roche and Jakub emphasize a broader societal responsibility.
How does Friedman justify profit maximization as a social responsibility?
What is "businesses increasing societal wealth and efficiency."
What is a benefit Roche and Jakub see in adopting a long-term approach?
What are "resilient companies that can thrive in changing environments."
In a profit-centered business model, who is expected to take care of social or environmental issues?
What is "Individuals" and "the government."
What advantage might a company gain by addressing social and environmental needs?
What is "Long-term resilience" and "positive brand reputation."
According to Roche and Jakub, why is it beneficial for businesses to consider non-financial forms of capital?
What are "sustainable business practices" and "broader societal needs being met."
What example do Roche and Jakub give of an issue that might require businesses to go beyond profit motives?
What is "environmental sustainability."
What term do Roche and Jakub use to describe their expanded view of business success?
What is the "Multi-capital approach."
What might happen to a business if it shifts focus away from maximizing profits?
What is "inefficiency" or "loss of competitiveness"
When a business considers more than just profit, it’s often seen as part of what kind of economy?
What is a "sustainable or inclusive economy."
What is the main criticism that Roche and Jakub might have against Friedman’s profit-maximization view?
What is "that it overlooks the long-term health of the business ecosystem and broader social needs."
How might Roche and Jakub respond to Friedman’s claim that businesses shouldn’t handle social issues?
They would argue that businesses are integral parts of society and have a role in addressing systemic social and environmental challenges.
How might Friedman argue against Roche and Jakub’s long-term approach?
He might say it dilutes the purpose of business and distracts from profit maximization.