Reaction paper Assignment Example | Topics and Well Written Essays - 500 words - 9

Reaction paper - Assignment Example economic terms, author discusses different suppressions of excesses of power (such as externalities, moral hazards, and monopolization practices) in order to demonstrate constant existence of control over managerial capitalism (Freeman 39-40). Finally, Freeman defines his stakeholder theory by providing its definition, finding out its actors, and evaluating their influential potential on managers of corporations. After arguing on â€Å"narrow† and â€Å"wide† concepts of stakeholder, he claims that owners, employees, suppliers, customers, and the local community have their stakes in contemporary corporations (Freeman 40-42). For him, government and â€Å"competitors† are not stakeholders, since â€Å"they are not necessary for the survival† of corporation (Freeman 42). In conclusion, Freeman recognizes manager as â€Å"King Solomon† (42) for the company, as in the given circumstances he has to satisfy different groups of stakeholders with various in terests. Another article, written by Milton Friedman, raises the question social responsibility to have a direct influence on corporate profits. To start with, the author draws on the most apparent fact of responsibility; namely, manager ss â€Å"an agent of the individuals who own corporation† (Friedman 2) is always responsible for his employees. In this case, he distinguishes executive’s corporate social responsibility from his own one by defining the core interest of his activity in serving employers and customers (Friedman 2). Furthermore, political dimension appears in the fact that social responsibility is the result of socialist perspective, which says that politicians not executives are responsible for sharing limited resources (Friedman 3). As a result, conflict of interests emerges as an additional obstacle to managerial objectivity while possessing socially responsible corporate activity (Friedman 3-4). Finally, Friedman analyzes open protests from stakeholders wheth er they correspond the ideal of democratic