BUS 206 AC Managerial Capitalism vs Shareholder Theory Case Questions
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This is the first case :
B1: The question of the social responsibility of business concerns what kind of reasons managers of
corporations should consider when making business decisions for the corporation.
B1a. Explain the meaning of the phrase “managerial capitalism.”
B1b. Identify the roles and responsibilities of the “corporate players.”
B1c. What is the purpose of separating ownership from management in traditional
corporations?
This is the second case
A1: Stockholder Theory
A1a. According to Stockholder Theory, a manager of a traditional corporation has an ethical
obligation to privilege the interests of the stockholders over the interests of others. Why?
A1b. How does Friedman define the doctrine of “social responsibilities of business” and why
is it unethical for businesses to engage in socially responsible acts?
A1c. Critics of the Stockholder Theory complain that it is “rife with moral hazard.” How so?
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