The GE and the Hudson River - Essay Example

Freeman’s stakeholder’s framework provides that business does not only make profits but have a social responsibility to take care of all the parties concerned. Thus, since GE has affected the river by contaminating it with PCB, they should pay for its clean-up. Damages have been caused to the aquatic life, endangering the life of human species and destruction of agriculture by burying the PCBs into the soil. This formed the basis why EPA is forcing GE to pay for its damages.Friedman advocated for the free market which states that; markets should be left to solve themselves into equilibrium and should not be interfered with by the government.

This had an impact on key business decision-making. For instance, the majority of the citizens are of the opinion that nature should be left to take its course in correcting the damages that are caused by GE to the Hudson River. This represents capitalist’s behavior that is only concerned by their profits and not the welfare of the community.