Management Essay Example | Topics and Well Written Essays - 2750 words

Management - Essay ExampleSince then, the debate has been on in favour and against of the thought and more relegateicularly to mention the right balance where profits corporeally benefit the society. Counter extreme to the argument was the concept of Corporate Social Responsibility which press outd that businesses are indispensable to respond to societal needs in other forms as well than just earning profit to maximise employment. Businesses sport to some extend own this restitution thought with further extension in idea regarding maximising shareholder and owners wealth and many other sub ideas. However, the finding of the real right balance between the corners is yet being debated as no measure has yet been developed to perfect solution. PRIMARY OBJECTIVE OF MANAGEMENT- THEORATICAL REFERENCES AND THEIR ANALYSIS To state in one sentence primary objective of the business is to benefit society, at the same time remember the fact that owners and shareholders are also part of so ciety and hence, not at the cost of the shareholders benefit. The debate shall focus more on the fact that how and to what this benefit extends shall be translated. Exploring the basic idea of Friedman who stated that the get down of business is to achieve maximum profits within boundaries of law and this is how society is benefitted, one finds this idea satisfactory unless there comes any law that does not keep back societal interest or even more questioning does there exist any law that goes against the interest of society? All the laws are make in larger interest of society and with this it can stressed that Friedmans thought had no flaw. However, most of the literature questioned the profit maximisation part with victorious it to the point that contrast to the societal concern and scope of debate enlarged in direction of benefit of firm or society as hearty and how it should be transferred. Considering this school of thought, more appropriate and concrete thought requires it be benefit or wealth of all stakeholders, where stakeholders include every person who is at one time or indirectly connected with organisation. This stance has no flaw as the basic idea constrains to remain operational within. (Stakeholder Analysis) To support the argument, consider the example of attach and Spencer. UK retail giant with global existence recent matter charging higher(prenominal) price to its women lingerie product stating the reason of higher cost and then higher tax was highly negated on social media website where more than 14000 large number joined the cause for protest. The protest ultimately forced the giant to bow down accept the decision as their mistake while taking back decision, giving excess discounts to all customer of that product class as well as apologies to the society. To extract from this example is the fact that if it the said argument would have been true in place then M&Ss decision should have been appreciated as the giant only aimed to cover the excess cost incurred on the product, that would have added to its profitability , though in its respective share only. While, people who protested just joined the cause for bias attitude towards certain people and of course not all were affected by the decision. Hence, what needs be do the basis of maximisation is the stakeholders wealth that is always in position to affect the position of firm (Bejou, 2011). From the given image, it can also be concluded that stakeholders comprise in levels. Firm