Applying Friedman's Free Market Philosophy
and Stakeholder Theory
Each group has been assigned one of the "Cases for Discussion." Try to agree on answers to the following questions about your case:
Note: These theories concern the responsibilities of business managers, not of each and every person involved in business. So in a couple of cases we need to refine our examples. For case 3, instead of considering whether or not someone should take a job working for this company, consider the company's decision to move its production facilities to the Third World country. (Assume that they had previously been getting this work done in the U.S.) For case 4, assume that the person who has discovered his friend’s cheating is one of the top managers of the firm.
1. What sorts of ethical concerns might be raised in connection with your case? (Try to express these concerns as fairly precise questions, as opposed to vague words or phrases. For example, if your case involved a situation where workers were exposed without their knowledge to a hazardous chemical in the workplace -- but their employer was aware of the hazard -- then, instead of just writing "the workers" or "the safety of the workers" or "the hazardous chemical" it would be better to write something like: "Is it fair for the employer to allow the employees to be exposed to a hazardous chemical in the workplace without making them aware of the hazard?")
2. Which, if any, of these concerns would be legitimate ones for a business manager to consider, according to Friedman's 'free market' view?
3. What course of action would be most consistent with Friedman's perspective? (Explain.)
4. Does it seem to you that Friedman's approach leads to a conclusion about what to do in your case that is acceptable from an ethical point of view? (Explain.)
5. What concerns would one have if one were approaching this case from the perspective of Freeman’s stakeholder theory?
6. What decision would best balance (or reconcile) the interests of the various stakeholders?