Nobody downloaded yet

Friedman Vs Drucker - Book Report/Review Example

Comments (0) Cite this document
Friedman vs Drucker The 1970 article by Milton Friedman titled "The Social Responsibility of Business is to Increase its Profits" argues that businesses were to engage in socially responsible activities it would be equivalent to practicing socialism. Peter Drucker, in his 1981 article, objects to the term "business ethics" and calls it "Casuistry" because it requires different ethical behavior for businesses than it does for individuals…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92% of users find it useful
Friedman Vs Drucker
Read TextPreview

Extract of sample "Friedman Vs Drucker"

Download file to see previous pages Friedman argues that the only responsibility of a business is to make profit for its various stakeholders. According to him, if a business diverts money from profits and uses the money for some social good, the business or the executives running the business are in essence imposing a tax on the stakeholders and deciding for themselves how spend the tax proceeds. He calls this undemocratic because there are no checks and balances as those imposed on democratically elected governments. He argues that the job of imposing tax is that of the government and if the government interferes in the way that the businesses spend their profit, it will slowly lead to socialism. Drucker on the other hand objects to the term "business ethics" which he contends is the new "in" subject replacing "social responsibility". Drucker's argument is that different scholars have approached ethics in different ways and that there is no one definition of what is ethical. Under the circumstance, business ethics becomes a very ambiguous term that is difficult to define. Drucker goes on look at business ethics from various approaches. He explains that the western religious traditions of ethics for individuals do not work in the business environment and so concludes that the definition of what is ethical is different for an individual and different for corporations. However, he argues, that having such different standards for individuals and corporations in not really ethics but "Casuistry". Casuistry is a 17th century concept according to which what is ethical for a ruler is different from what is ethical for the individual since the ruler is "someone whose actions have impact on other". As such, a ruler must put social responsibility ahead of individual conscience. Drucker denounces casuistry because it "considers social responsibility to be an ethical absolute" and because it makes ethics a political objective of businesses and business executives. Drucker further gives examples to demonstrate how casuistry is not compatible with what is considered ethical. Next Drucker looks at business ethics as Ethics of Prudence. According to this approach, every person in a corporation has some degree of leadership and a leader must never act in a way that his actions need to be explained to others. Although Drucker feels that Ethics of Prudence has the potential of becoming practice in public relations, he feels that it is appropriate in a "society of organizations". Drucker defines a "society of organization" as one in which a large number of individuals are in important positions of power. However, this power is not conferred by birth but is result of their position and so they have a responsibility to take right actions. According to him, Ethics of Prudence is not business ethics because it lays down the same ethical principle for everyone and is based on authority while business ethics rejects any authority. Finally, Drucker approaches ethics as the Confucian ethics of interdependence. According to this approach, every individual is interdependent on another individual and his or her actions should be such that they lead to mutual benefits for both ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Friedman Vs Drucker Book Report/Review Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from
(Friedman Vs Drucker Book Report/Review Example | Topics and Well Written Essays - 1000 Words)
“Friedman Vs Drucker Book Report/Review Example | Topics and Well Written Essays - 1000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Ethical perspectives: Alahmad, Freidman vs Drucker, Murphy

...?Ethical perspectives: Alahmad, Freidman vs Drucker, Murphy The concept of business management has transformed significantly over the last few years.New ideas have generated in the mode of operation of the business and the idea of ethics has crept in the business. Much debate has been raised regarding the concept of ethics in the business and the paper studies the different ideas provided on business ethics by noted management authorities like Alahmad, Friedman, Drucker and Murphy. Their views on social responsibility and business ethics have been compared and the different approaches of the business leaders are compared regarding their decision making capabilities in relation to the business ethics. Views of Alahmad: In view... form the...
48 Pages(12000 words)Essay

Apple's marketing strategy in China

..., whether the market is home or foreign” (Cherunimal, 2010, p.1). The competitiveness of the global environment has been made possible by technological advances that have leveled the playing field for international businesses to penetrate cross-border markets (Friedman, 2007). Modern means of communication, which facilitates information gathering and business transactions, “allowing people around the world to compete, connect, and collaborate” (Cherunimal, 2010). Nor is the globalization trend limited to commerce and trade, such that “No institution, whether a business, a university or hospital, can hope to survive, let alone to succeed, unless it measures up to the standards set by the leaders in its field any place in...
20 Pages(5000 words)Literature review

The Friedman Family Model

...? The Friedman Family Assessment Model The Friedman Family Assessment Model Family health requires nursing interventions that influence the family assessment by health care providers. Friedman (2003) developed an assessment model that helps nurses collect family information necessary for determining family health. Nurses use open-ended questions to conduct thorough assessments of the family health history, its ability to grow, care for itself, and its contribution to the society. These questions give the interviewee the opportunity to explain and expand their answers. The family represents the primary social group and influences or is influenced by other institutions and people in the...
11 Pages(2750 words)Essay

Strategic Marketing - The Drucker Assignment

...? Strategic Marketing - The Drucker Assignment Introduction Peter Ferdinand Drucker is regarded as one of the most influential management thinkers ofthe present era. He had a successful career as management consultant in the companies of repute like GE, Coca-Cola and CitiCorp among others and also had authored various journal papers and books. The book with the title “The Essential Drucker” was published in 2001 and comprises a compilation of various works of him on management. The book “The Essential Drucker” is written by Peter F. Drucker which has been organized around the three core points that Drucker focused upon such as career...
4 Pages(1000 words)Essay

CW4 - Peter Drucker

...?Background The Peter Drucker belonged to the Jewish who later accepted Christianity. He was born in Austria spend his early times in Europeanregion including Germany and England in the family of scholars and thinkers where new ideas were discussed on routine basis. He wrote more than 39 books and was several journals. He wrote regular articles in Wall street Journal for 10 years. He permanently relocated to United States after marriage and continued with his profession as a professor and freelance management consultant. Peter’s era was the twentieth century where his career regarding management consultant grew from 1942.Peter Drucker had led a bright career in teaching phycology, sociology and management. Ultimately he pioneered... in...
6 Pages(1500 words)Essay

Marketing Management. Peter Drucker

...Marketing Management Case Study - Nissan Motors Co. Ltd. Peter Drucker the management guru said, "It is the who determines what a business is. For it is the customer, and he alone through being willing to pay for a good or service, converts economic resources into wealth, things into goods." Understanding the market and the buyer behavior is therefore very important for any company. Understanding 'why buyers do what they do (or don't do)' forms the most challenging part for marketing people. The buyer could be individual consumers, or organisations. Buyers are motivated to purchase the product depending on the brand value as well as functional values of the product. According to Maslow's hierarchy of needs buyer's needs vary... Management...
3 Pages(750 words)Essay

Milton Friedman- Economics

...MILTON FRIEDMAN In the 20th century many new economic movements sprung up around the world. Lots of people had different ideas. Communism took control of Russia and China and dozens of other, poorer countries. Under communist governments, people suffered horribly as wealth was directed to the government and redistributed based on faulty or politically-motivated information. Millions had their economic opportunities stolen from them. The United States and its allies, however, pursued a different path. They opened up their economies, gave power to their people, and signed free trade agreements. All of these policies generated tremendous wealth and opportunity. They certainly weren’t perfect, but nothing in life is perfect....
4 Pages(1000 words)Essay

Managing Oneself by Peter Drucker

...Managing Oneself by Peter Drucker Peter Drucker in his article, “Managing Oneself” (Drucker) suggests that the modern work environments are no longer a passive workplace with prescriptive work. In fact, workers need to take charge of their own careers and guide them according to their personal strengths, values, knowledge, and adaptability. In the modern world, it is essential for people to assume responsibility for their own career building and work options. This is unlike most of the past human history where entire families and generations were engaged in the same business with no need to see if that particular work suited the individuals. Now, each individual must assess one’s own strengths and working style and match them... with...
3 Pages(750 words)Essay

Drucker - New Organizations Article

...The Coming of the Organization Review of the Article- The Coming of the Organization Peter E. Drucker is well known for his contributions on management practices and thought. In this article, he has discussed how large business organizations will get transformed in the coming 20 years (it is pertinent to note that this article was written in 1986). The excerpt of this article is being presented in the following paragraphs. Drucker categorically mentions that the future organizations will be knowledge-based and will be spearheaded by specialists taking feedback from the customers, colleagues and from the top management. The information will be a chief guiding force for the functioning and growth of the...
2 Pages(500 words)Article

Keynse v Friedman

...Full Teachers Keynes vs. Friedman (differences in economic viewpoints) 21 November (word count = 339) John Maynard Keynes (1883-1946) is a giant in the field of macroeconomics. He did what no other economist of his time was able to do and that is to influence the economic and political policies of many governments due to the strength of ideas and economic theories. In particular, he advocated for strong government action to guide a countrys economy whenever the private enterprise sector is not able to revive a flagging economy or sustain the recovery. One key idea of Keynes which deviated from classical economics was to compute for demand in the aggregate which in turn determines the level of employment....
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Book Report/Review on topic Friedman Vs Drucker for FREE!

Contact Us