Milton Friedman on CSR

One of the most fundamental views proposed by Milton Friedman is that a business manager has to make sure that profits are maximized. This is supposed to be conducted in such a way that promotes the objectives of shareholders. These views, while quite important for the achievement of business goals, have been criticized because of the belief that Friedman basically aims at narrowing the moral attitude of a business manager to concentrate on profit maximization instead of applying the virtues of management practices. In this paper, there will be an analysis of the criticisms leveled at Friedman and the manner through which his stance can be defended.

One of the criticisms leveled at Friedman’s stance is that it promotes the idea that profit should be the motivating factor of business managers. An argument that has been made in response to this stance is that managers should always seek to make sure that they are able to advance the ideals and ideas affecting their enterprises rather than seeking to achieve profits (Wight & Calkins, 2008). Profit maximization does not necessarily account for the motivation of the manager towards the achievement of business objectives. Instead, it promotes a situation where there is a drive towards profit maximization without considering the consequences of their actions. Under such circumstances, the manager does not have the behavioral motivation aimed at not only promoting the interests of the business, but also those of the people that contribute to it; especially its stakeholders (Arrow, 1973). Another criticism that has been made concerning Friedman’s stance is that it fails to consider that there are a number of motives, other than making profits, which inform the desire of individuals to participate in business. The achievement of a successful business is not just based on the making of profits, but also ensuring that there is the advancement of inspirational sentiments as well as the motivation that is brought about within the institution. A result of this situation is that it becomes possible for an organization to achieve success without concentrating only on profit making.

Another criticism of Friedman’s model is based on the fact that there are a large number of alternatives to it. Therefore, rather than being perfect, it is a model that essentially has a considerable number of alternatives that could work better than it. When it comes to entrepreneurship, managerial motivations are not necessarily the only determinants of the success of a business (Wight & Calkins, 2008). This is because success often involves a situation where there is the advancement of such ideas as risk taking and the desire to build the business in such a way that it is able to achieve its goals. The actualization of management objectives is fundamental in bringing about a successful business, but it cannot be the only motivation because without such input as risk taking and the protection of stakeholder interests, a business cannot hope to thrive. Moreover, there is also a need to develop means through which rivalries can be handled and this is in such a way that ensures that there is the creation of tactics that keep the business ahead of others (Arrow, 1973). This is especially the case where there is a need to make sure that the business is successful through keeping ahead of rivals, because staving off rivalries helps businesses come to terms with themselves, especially their strengths and weaknesses. Through such knowledge, they can work towards the improvement of products so that they can remain competitive. This is a situation, it is argued, that is not factored in by Friedman’s model.

Moreover, Friedman is also criticized for not factoring in the inspirational components of business practice. This is especially considering that while Friedman explains that motivated self-interest is an essential factor when among managers when it comes to maximization of profits. However, this factor can also end up being a mask for the greed that the managers have because profit alone as an aim can end up making managers make some very unethical decisions (Wight & Calkins, 2008). Therefore, under such circumstances, managers could end up promoting the corporate social responsibility (CSR) not because they are motivated to do so, but because they would likely to make sure that there is the advancement of the reputation of the business. This is especially considering that a manager could make use of corporate social responsibility as a mask for the organization so that it can end up aiding in an increase in productivity, customer loyalty, and finally, profitability. There is, under such circumstances, a failure to consider the ethical responsibility that the business has towards its stakeholders because managers only consider CSR as a means towards an end rather than as an end in itself (Arrow, 1973). Such a failure can end up being disastrous for a business because it only inspires profit making while not really caring about the welfare of stakeholders who actually make the contributions to its profits.

Despite the arguments above, there are cases where Friedman’s views can be defended. One of the most significant aspects of businesses is that they often undergo pressure from shareholders to make sure that they make profits. This is especially the case when it comes to meeting set profit targets because managers are often under considerable pressure to perform. Therefore, an organization ends up developing a culture of profit maximization using any of the means that are available to it. A result is that the business ends up being able to ensure that it undertakes those initiatives aimed at making it more successful through the advancement of profit making for the sake of securing the welfare of all its members. Moreover, it becomes possible to make sure that there is the advancement of means to ensure a positive outcome from its activities because without profits, organizations end up not being considered successful and are at risk of collapse. Friedman is therefore correct because he proposes that the making of profits should be the ultimate goal of any business and managers should be geared towards making this objective become a reality.

In conclusion, Milton Friedman has been criticized for promoting a model that pushes managers towards profit maximization. These criticisms are based on the argument that businesses should do more to ensure that they protect the interests of all stakeholders rather than only shareholders. While this ethical argument is pertinent, Friedman can be considered to be correct in his assumption that the main purpose of business is to promote the making of profit. Shareholders often hold managers responsible for making profits, meaning that it is essential for them to make sure that they make the businesses as profitable as possible through any means necessary, including the use of CSR.

References

Arrow, K. J. (1973). Social responsibility and economic efficiency. Public Policy, 21(3), 303-317.

Wight, J. B., & Calkins, M. (2008). The ethical lacunae in Friedman's concept of the manager. Journal of Markets and Morality, 11(2).

Advantages of a Multicultural Education System

Multicultural education is an emerging discipline whose main aim is to ensure equality in education among the people from different backgrounds, for example race, culture, and social class. The main aim of this new discipline is to equip these people with the necessary knowledge, skills and attitudes that will enable them to effectively function in a diverse society creating a community whose purpose will be for the common good of all its members. Multicultural education draws upon knowledge from more established disciplines such as ethnic studies and women studies and tends to challenge or reinterpret this knowledge. This knowledge is applied to the basic curriculum of multicultural education in respect to the values of diversity which is propagated by this discipline. Multicultural education means different things to different people and this has led to its complexity and since it has so many definitions teachers or instructors implement it in a variety of ways, based on their own understanding of this type of education. There are many reasons why teachers introduce multicultural education in their classrooms and these reasons are implemented to address the following issues: the development of ethnic and cultural literacy; the personal development of individual students especially those from underrepresented communities; the clarification of attitudes and values among students; and finally, the development of a multicultural social competence. It has been proven that education in a multicultural setting enhances teacher effectiveness and student achievement and this is evidence for the continuation and expansion of this field of education. In a country with such diverse backgrounds as the United States, it is very important for students to be taught to appreciate each other’s backgrounds and the best way to do this is to incorporate the literature from all these backgrounds into the education system.

The main reason for the use of multicultural literature in class is to get the students to appreciate each other’s culture in order to have a positive understanding and respect for each other, no matter their background. This encourages the positive development of common relationships, honesty and interest in the others’ culture. Multicultural books should also be used to engender racial pride in students and not to only create an appreciation of the culture of others. Literature affects how students look upon themselves and if some of these students are from a minority background for example, and the literature taught in class does not have any minority character as a hero, then this would lead to a low opinion of their own people, hence a low esteem of themselves.

There are many multicultural books that have come into the market and some of these are not the best type of literature to teach to a multicultural class. Teachers should therefore be very careful about the quality of multicultural literature that they introduce to their classes. Given the rising cost of books, teachers might be tempted to only get those books that are cheaper, not considering their quality, as long as it is a multicultural book. However, teachers should always do their best to ensure that their students get only the best quality of material for their classes, no matter their cost. Teachers should select books which do not display racism by modern standards and should avoid those classics which openly display racism as well as cultural hatred. They should not only select those books that portray minorities in a positive light, but they should also look at the language quality of each of the books they get because language is an essential part of how students receive the message that the book is attempting to convey. Most teachers have very little understanding of the kind of multicultural literature they should introduce in their classes and because of this, it would be best for them to carefully do their research before making any attempt to make a selection. The literature they choose should accurately and respectively show the images of the cultures (especially minority cultures) that they are meant to represent.

In books that have illustrations, these illustrations have to be examined by the teacher to make sure that they accurately represent the people from different races, whether they are white, black, Asian, or Indian, and these, should not be drawn as caricatures. It is best to select books which show the diversity that can be found within a specific race, while those books which only display the stereotypical characteristics of a certain race should be discarded. This will help to ensure that students learn to appreciate the diversity within each race and will prevent them from the vice of stereotyping, something which is never an accurate representation. Once a teacher has established that the illustrations are above reproach in terms of racial stereotyping, then the next step would be to assess the text within such a book. The text should also be able to display the fact that not everybody in a certain community live in poverty, or that they do not have their own thoughts. It should show the diversity and independence that can be found in every community without any of the racial prejudices which some texts tend to display. The text should also be checked to see whether the cultures of minority groups are treated with respect or whether they are considered to be inferior to that of the dominant white culture. On the other hand, the books should show an accurate description of minority cultures and these cultures should therefore not be overly romanticized to make them more appealing.

In conclusion, it can be said that the literature, the themes displayed within them, and the personal achievements of the characters within this literature are very important in enhancing the multicultural material in the classroom. They help in the development in racial pride especially among minority students as well as the appreciation of the culture of others. These materials not only provide an opportunity for the interaction of different cultures on an equal basis, but they also create opportunities for the students to learn about the diversity of their nation.

On Dependence on Communication Technology

Communication technology is one of the most important things in the world today, with most people using it in one form or the other. It enables use to transmit important information quickly and efficiently than was done previously. This technology had developed very quickly over the last few decades with new communication technologies and devices coming into the market everyday. Despite the numerous advantages that communication technology has to offer us, there have developed several related problems and the most significant of these is overdependence on this technology. In this paper, we shall discuss some of the aspects of dependence on communication technology and how they affect companies.

Many companies, especially the large ones, have become completely dependent on communication technology to do their day to day business. This technology has enabled them to be able to reach both their regular customers as well as potential customers. Furthermore, communication technology has enabled these companies to cheaply relay their information to a larger audience using all means of communication available to people across their market including social networks, mobile phones, and the internet, among others. The communication technologies being developed today are becoming more and cheaper as new means of communication and devices are being created. Companies are increasingly becoming dependent on communication technology because this technology is becoming more affordable and available to people who make up the potential market, something which was not possible only a few years ago, when technology was more expensive. This has the potential of encouraging these companies not to go out to the potential market to study it for more tangible information about their customers’ needs and may in the process lead to their production of products which are not viable in the market.

Another issue which can come up due to the dependence on communication technology is its vulnerability to sabotage for malicious purposes. The current communication technology is very open for attacks from hackers, rival companies, among others, whose aim is to either use the communication network to gain information on the company’s customers or to sabotage the operations of the company. It is therefore advisable for companies to not only choose communication technology which is cheaper but to also consider its security. Such companies should do their best to ensure that all their communication systems are secure and that regular checks are made to detect whether there have been any breaches in such systems. The modern communication systems are highly dependent on electrical power and any interruption of power supply would mean that no communication can be made. Furthermore, the dependence on communication technology should be minimized and only be used sparingly to ensure the security of their communication systems. More traditional ways of communicating with potential customers should be put in place so that these companies can better get to know exactly what their customers want as well as keep themselves secure from any breakdown of their communication network.

In conclusion, we have seen how cheap communication technology has not only helped companies to market their products widely, but has also led to the reduction of the quality of their products due to their not being able to directly make an assessment of their customers’ needs. Moreover, we have seen how communication technology can be vulnerable to attacks and sabotage from people with malicious intentions and why it is best to continue to use the more traditional methods of communication. It is therefore best for companies to carefully select their communication technologies to ensure efficiency.