bmgt 496 week 7 project 2: business obligations

write a memo as CEO of the company answering:

Explain Milton Friedman’s arguments supporting that a company’s only obligation is to make money.Explain the arguments contrary to Friedman’s position including where the Business Roundtable stands as well as other arguments you find in your research.

Project 2: Business Obligations
(Your Name)
BMGT 496 (section number)
(Instructor’s Name)
(Please do not use pictures or images on the Title Page – remove from your final
copy)
Memorandum
To:
From:
Date:
Subject:
Introduction
(Write an Introduction paragraph. The Introduction paragraph is the first paragraph of
the paper and will be used to describe to the reader the intent of the paper explaining
the main points covered in the paper. This intent should be understood prior to reading
the remainder of the paper so the reader knows exactly what is being covered in the
paper.)
(Write the introduction last to ensure that the main points are covered.)
Summary of Friedman’s Position
(Remember to layout not just his position, but all the justifications he gives supporting
that position.)
Summary of Contrary Positions
(Explain the position of the Business Roundtable as well as other contrary arguments
you find
Demonstrate How Each Position Would Affect the Outcome of an Ethical Dilemma
(Choose an ethical dilemma you have raised in a class discussion and illustrate how the
resolution would be different apply Friedman’s or the contrary position.)
Most Compelling Position
(Between the two positions you have discussed, explain the position that you find most
compelling. What are the weaknesses and strengths of each position?)
Conclusion
(Write a concluding paragraph that is brief and summarizes the main points. Make a
specific recommendation to the CEO as to the approach she should take.)
References
(The reference page is on a separate page from the report. The reference page is
completed according to APA with each reference left-justified with hanging indentation
for subsequent lines. References are completed in alphabetical order. Please see the
module, Learn to Use APA to ensure references are in APA format.)
Statement on the Purpose of a Corporation
Americans deserve an economy that allows each person to succeed through hard work and creativity
and to lead a life of meaning and dignity. We believe the free-market system is the best means of
generating good jobs, a strong and sustainable economy, innovation, a healthy environment and
economic opportunity for all.
Businesses play a vital role in the economy by creating jobs, fostering innovation and providing
essential goods and services. Businesses make and sell consumer products; manufacture equipment
and vehicles; support the national defense; grow and produce food; provide health care; generate
and deliver energy; and offer financial, communications and other services that underpin economic
growth.
While each of our individual companies serves its own corporate purpose, we share a fundamental
commitment to all of our stakeholders. We commit to:
–
Delivering value to our customers. We will further the tradition of American companies
leading the way in meeting or exceeding customer expectations.
–
Investing in our employees. This starts with compensating them fairly and providing important
benefits. It also includes supporting them through training and education that help develop
new skills for a rapidly changing world. We foster diversity and inclusion, dignity and respect.
–
Dealing fairly and ethically with our suppliers. We are dedicated to serving as good partners to
the other companies, large and small, that help us meet our missions.
–
Supporting the communities in which we work. We respect the people in our communities
and protect the environment by embracing sustainable practices across our businesses.
–
Generating long-term value for shareholders, who provide the capital that allows companies
to invest, grow and innovate. We are committed to transparency and effective engagement
with shareholders.
Each of our stakeholders is essential. We commit to deliver value to all of them, for the future success
of our companies, our communities and our country.
Released: August 19, 2019
Signatures Updated: September 2019, December 2019, February 2020, April 2020, June 2020, August
2020, September 2020, October 2020 and February 2021.
Kevin J. Wheeler
President & Chief Executive
Officer
A. O. Smith Corporation
Daniel P. Amos
Chairman and CEO
Aflac
Nicholas K. Akins
Chairman, President and CEO
American Electric Power
Roger K. Newport
Chief Executive Officer
AK Steel Corporation
Stephen J. Squeri
Chairman and CEO
American Express
Julie Sweet
Chief Executive Officer
Designate
Accenture
John O. Larsen
Chairman, President & CEO
Alliant Energy
Thomas Bartlett
President and Chief Executive
Officer
American Tower Corporation
Carlos Rodriguez
President and CEO
ADP
Lee Styslinger, III
Chairman & CEO
Altec, Inc.
James M. Cracchiolo
Chairman and Chief
Executive Officer
Ameriprise Financial
Mike Burke
Chairman and CEO
AECOM
Jeffrey P. Bezos
Founder and Chief
Executive Officer
Amazon
Steven H. Collis
Chairman, President and
Chief Executive Officer
AmerisourceBergen
Corporation
Andrés Gluski
President and CEO
The AES Corporation
Doug Parker
Chairman & CEO
American Airlines
Gail Koziara Boudreaux
President and CEO
Anthem, Inc.
Robert Ford
President and Chief Executive
Officer
Abbott
Greg Case
CEO
Aon
John A. Hayes
Chairman, President
and CEO
Ball Corporation
Laurence D. Fink
Chairman and Chief
Executive Officer
BlackRock, Inc.
Tim Cook
CEO
Apple
Brian Moynihan
Chairman and CEO
Bank of America
Todd Gibbons
Chief Executive Officer
BNY Mellon
Eric Foss
Chairman, President & CEO
Aramark
José (Joe) E. Almeida
Chairman, President and Chief
Executive Officer
Baxter International Inc.
Frédéric B. Lissalde
President and Chief
Executive Officer
BorgWarner Inc.
Alan B. Colberg
President and CEO
Assurant
Philip Blake
President Bayer USA
Bayer USA
Rich Lesser
CEO
Boston Consulting Group
Randall Stephenson
Chairman and Chief Executive
Officer
AT&T Inc.
Brendan P. Bechtel
Chairman & CEO
Bechtel Group, Inc.
Robert Dudley
Group CEO
BP plc
John Stankey
Chief Executive Officer
AT&T Inc.
Corie Barry
Chief Executive Officer
Best Buy Co., Inc.
Bernard Looney
Chief Executive Officer
BP
Giovanni Caforio
Chairman and Chief
Executive Officer
Bristol Myers Squibb
D. James Umpleby III
Chairman and Chief Executive
Officer
Caterpillar, Inc.
Evan G. Greenberg
Chairman & CEO
Chubb
Bob Biesterfeld
President and Chief Executive
Officer
C.H. Robinson Worldwide
Robert E. Sulentic
President & CEO
CBRE Group, Inc.
David M. Cordani
President and Chief
Executive Officer
Cigna
Maurice R. Greenberg
Chairman and CEO
C.V. Starr & Co., Inc.
Michael F. Neidorff
Chairman, President, and CEO
Centene Corporation
Chuck Robbins
Chairman and CEO
Cisco Systems, Inc.
Mike Kaufmann
Chief Executive Officer
Cardinal Health
W. Anthony Will
President & Chief
Executive Officer
CF Industries
Michael L. Corbat
Chief Executive Officer
Citigroup, Inc.
Kewsong Lee
Co-Chief Executive Officer
The Carlyle Group
Michael K. Wirth
Chairman and Chief Executive
Officer
Chevron Corporation
Lourenco Goncalves
Chairman, President and
Chief Executive Officer
Cleveland-Cliffs, Inc.
David Gitlin
President and Chief Executive
Officer
Carrier Global Corporation
Brian Niccol
Chairman and Chief Executive
Officer
Chipotle Mexican Grill
Hubertus M. Mühlhäuser
Chief Executive Officer
CNH Industrial
James Quincey
Chairman and Chief
Executive Officer
The Coca-Cola Company
Tom Linebarger
Chairman and CEO
Cummins Inc.
Michael S. Dell
Chairman and CEO
Dell Technologies
Brian Humphries
Chief Executive Officer
Cognizant
Brett White
Executive Chairman & CEO
Cushman & Wakefield
Punit Renjen
Global CEO
Deloitte
Brian L. Roberts
Chairman & CEO
Comcast Corporation
Larry Merlo
President & CEO
CVS Health
Ed Bastian
Chief Executive Officer
Delta Air Lines, Inc.
Ryan M. Lance
Chairman & CEO
ConocoPhillips Company
Karen S. Lynch
President and Chief Executive
Officer
CVS Health
Bob Chapek
Chief Executive Officer
The Walt Disney Company
Wendell P. Weeks
Chairman, Chief Executive
Officer & President
Corning Incorporated
Hal Yoh
Chair and CEO
Day & Zimmermann
Jim Fitterling
Chairman and Chief Executive
Officer
Dow
James C. Collins, Jr.
Chief Executive Officer
Corteva Agriscience
John May
Chief Executive Officer
Deere & Company
Lynn Good
Chairman, President & CEO
Duke Energy
Ed Breen
Executive Chair of the Board &
CEO
DuPont de Nemours, Inc.
David A. Ricks
Chairman and Chief Executive
Officer
Eli Lilly and Company
Revathi Advaithi
Chief Executive Officer
Flex
JM Lawrie
Chairman, President, and CEO
DXC Technology
Christopher M. Crane
President and Chief Executive
Officer
Exelon Corporation
Carlos M. Hernandez
Chief Executive Officer
Fluor Corporation
Mike Salvino
President and Chief Executive
Officer
DXC Technology
Darren W. Woods
Chairman and CEO
Exxon Mobil Corporation
James P. Hackett
President and CEO
Ford Motor Company
Mark J. Costa
Chairman and CEO
Eastman Chemical Company
Carmine Di Sibio
Global Chairman & CEO
EY
James “Jim” D. Farley, Jr.
President and Chief Executive
Officer
Ford Motor Company
Craig Arnold
Chairman and CEO
EATON
Frederick W. Smith
Chairman & CEO
FedEx Corporation
Lachlan K. Murdoch
Executive Chairman & CEO
Fox Corporation
Pedro J. Pizarro
President & CEO
Edison International
Gary Norcross
Chairman, President & CEO
FIS
Richard C. Adkerson
Vice Chairman, President and
Chief Executive Officer
Freeport-McMoRan Inc.
Sonia Syngal
Chief Executive Officer
Gap Inc.
Andrew J. McMahon
Chief Executive Officer and
President
The Guardian Life Insurance
Company of America
Darius Adamczyk
Chairman and CEO
Honeywell
Phebe Novakovic
Chairman and CEO
General Dynamics Corporation
Gerald W. Evans
CEO
Hanesbrands Inc.
Enrique Lores
President and CEO
HP Inc.
Mary Barra
Chairman & CEO
General Motors Company
Stephen B. Bratspies
Chief Executive Officer
Hanesbrands Inc.
Bruce Broussard
President and CEO
Humana Inc.
David M. Solomon
Chairman and Chief
Executive Officer
The Goldman Sachs Group, Inc
Dinesh C. Paliwal
President and Chief Executive
Officer
HARMAN International
Mike Petters
President and Chief Executive
Officer
Huntington Ingalls Industries
Bradley J. Preber
Interim CEO
Grant Thornton LLP
Steven R. Swartz
President and CEO
HEARST Corporation
Arvind Krishna
Chief Executive Officer
IBM Corporation
Deanna M. Mulligan
President and CEO
Guardian Life Insurance
Company of America
Craig Menear
Chairman, CEO and President
The Home Depot
Ginni Rometty
Chairman, President, and
Chief Executive Officer
IBM Corporation
Charles Phillips
Chief Executive Officer
Infor
Samuel R. Allen
Chairman and CEO
John Deere
Bruce E. Grewcock
CEO and Chairman of the
Board
Kiewit Corporation
Robert H. Swan
Chief Executive Officer
Intel Corporation
Alex Gorsky
Chairman of the Board and
Chief Executive Officer
Johnson & Johnson
Michael Hsu
Chairman of the Board and
Chief Executive Officer
Kimberly-Clark
Mark S. Sutton
Chairman and CEO
International Paper Co.
George R. Oliver
Chairman and CEO
Johnson Controls
Bill Thomas
Global Chairman and CEO
KPMG LLP
Michael I. Roth
Chairman and Chief
Executive Officer
Interpublic Group
Jamie Dimon
Chairman and CEO
JPMorgan Chase & Co.
Lynne M. Doughtie
Chairman and CEO
KPMG LLP
Linda H. Apsey
President & CEO
ITC Holdings Corp.
Beth E. Mooney
Chairman & CEO
KeyCorp
William M. Brown
Chairman & Chief
Executive Officer
L3Harris Technologies, Inc.
Steve Demetriou
Chair and CEO
Jacobs
Christopher M. Gorman
Chairman, Chief Executive
Officer, and President
KeyCorp
Beth E. Ford
President and CEO
Land O’Lakes, Inc.
Roger A. Krone
Chairman and Chief
Executive Officer
Leidos
Mark Trudeau
President and CEO
Mallinckrodt Pharmaceuticals
Ajay Banga
President & CEO
Mastercard
Stuart Miller
Executive Chairman
Lennar Corporation
Lee M. Tillman
Chairman, President and CEO
Marathon Oil Corporation
Ynon Kreiz
Chairman and Chief
Executive Officer
Mattel, Inc.
James D. Taiclet
President and Chief
Executive Officer
Lockheed Martin
Corporation
Gary R. Heminger
Chairman and CEO
Marathon Petroleum
Corporation
Chris Kempczinski
President and CEO
McDonald’s
Marillyn A. Hewson
Michael Hennigan
Chairman, President and CEO President and CEO
Lockheed Martin Corporation Marathon Petrolem
Corporation
Lawrence E. Kurzius
Chairman, President and CEO
McCormick and Company, Inc.
Bhavesh V. (Bob) Patel
Chief Executive Officer
LyondellBasell Industries
Arne M. Sorenson
President and Chief
Executive Officer
Marriott International, Inc.
Brian Tyler
Chief Executive Officer
McKesson Corporation
Jeff Gennette
Chairman & Chief
Executive Officer
Macy’s, Inc.
Roger W. Crandall
Chairman, President & Chief
Executive Officer
MassMutual
Kevin Sneader
Global Managing Partner
McKinsey & Company
Geoffery S. Martha
Chief Executive Officer
Medtronic, Inc.
Raymond McDaniel Jr.
President and Chief Executive
Officer
Moody’s
David L. Stover
Chairman and CEO
Noble Energy, Inc.
Omar Ishrak
Chairman & CEO
Medtronic plc
James P. Gorman
Chairman & CEO
Morgan Stanley
Kathy Warden
Chairman, Chief Executive
Officer and President
Northrop Grumman
Corporation
Michel Khalaf
President & Chief
Executive Officer
MetLife
Greg Brown
Chairman & CEO
Motorola Solutions
Steve Fisher
President & CEO
Novelis
Sanjay Mehrotra
President & CEO
Micron Technology
Adena T. Friedman
President and CEO
Nasdaq
Mauricio Gutierrez
President & CEO
NRG Energy, Inc.
Satya Nadella
Chief Executive Officer
Microsoft Corporation
Thomas C. Nelson
Chairman, President & CEO
National Gypsum Company
Safra Catz
CEO
Oracle
Ken Moelis
Chairman & CEO
Moelis & Company
Ted Mathas
Chairman, President and CEO
New York Life Insurance Co.
Brian Chambers
President and Chief
Executive Officer
Owens Corning
Dan Shulman
President and Chief Executive
Officer
PayPal, Inc.
David S. Taylor
Chairman of the Board,
President and Chief
Executive Officer
The Procter & Gamble
Company
Thomas A. Kennedy
Chairman & CEO
Raytheon Company
Ramon Laguarta
Chairman and CEO
PepsiCo
Tricia Griffith
President & CEO
The Progressive Corporation
Blake D. Moret
Chairman and Chief
Executive Officer
Rockwell Automation
Dr. Albert Bourla
Chief Executive Officer
Pfizer Inc.
Bob Moritz
Chairman
PwC
Neil Hunn
President and Chief
Executive Officer
Roper Technologies, Inc.
Greg C. Garland
Chairman and CEO
Phillips 66
Steve Mollenkopf
Chief Executive Officer
Qualcomm Incorporated
Douglas L. Peterson
President and CEO
S&P Global
Marc B. Lautenbach
President and Chief Executive
Officer
Pitney Bowes
Earl C. Austin, Jr.
President and Chief
Executive Officer
Quanta Services
Marc Benioff
Chair & Chief Executive
Officer
Salesforce
Daniel J. Houston
Chairman, President
and CEO
Principal
Gregory J. Hayes
Chief Executive Officer
Raytheon Technologies
Corporation
Keith Block
Co-CEO
Salesforce
Christian Klein
Chief Executive Officer
SAP
Egon Durban
Silver Lake
Kevin Lobo
Chairman & CEO
Stryker
Bill McDermott
Chief Executive Officer
SAP
Stewart Butterfield
Co-Founder and Chief
Executive Officer
Slack Technologies, Inc.
John F. Fish
Chairman & CEO
Suffolk
Jim Goodnight
CEO
SAS Institute
Thomas A. Fanning
Chairman, President
and CEO
Southern Company
Margaret M. Keane
Chief Executive Officer and
Member of the Board of
Directors
Synchrony
Tamara L. Lundgren
President and Chief Executive
Officer
Schnitzer Steel Industries, Inc.
James M. Loree
President & Chief Executive
Officer
Stanley Black & Decker
Brian Cornell
Chairman & CEO
Target
Jeffrey W. Martin
Chairman & CEO
Sempra Energy
Michael L. Tipsord
Chairman, President & Chief
Executive Officer
State Farm
Russell K. Girling
President and Chief
Executive Officer
TC Energy
Lisa Davis
CEO
Siemens Corporation USA
James P. Keane
President and CEO
Steelcase Inc.
LeRoy T. Carlson, Jr.
CEO
Telephone & Data Systems,
Inc.
Richard K. Templeton
Chairman, President and
Chief Executive Officer
Texas Instruments
Incorporated
M. Troy Woods
Chairman, President & CEO
TSYS
Carol Tomé
Chief Executive Officer
UPS
Marc N. Casper
Chairman, President and Chief
Executive Officer
Thermo Fisher Scientific
Peter J. Davoren
President & CEO
Turner Construction Co.
David Abney
Chairman and Chief
Executive Officer
UPS
Rob Speyer
President & CEO
Tishman Speyer
Lance M. Fritz
Chairman, President & CEO
Union Pacific
Stuart Parker
CEO
USAA
Hal Lawton
President and Chief Executive
Officer
Tractor Supply Company
Scott Kirby
Chief Executive Officer
United Airlines
Wayne Peacock
President and Chief
Executive Officer
USAA
Alan D. Schnitzer
Chairman and Chief
Executive Officer
The Travelers Companies Inc.
Oscar Munoz
Chief Executive Officer
United Airlines
Mortimer J. Buckley
Chairman & CEO
Vanguard
Kelly S. King
Chairman and Chief Executive
Officer
Truist Financial Corporation
Gregory J. Hayes
Chairman & CEO
United Technologies
Corporation
Scott G. Stephenson
Chairman, President and
Chief Executive Officer
Verisk Analytics
Alfred F. Kelly, Jr.
Chairman and Chief Executive
Officer
Visa Inc.
John J. Engel
Chairman, President and CEO
WESCO International, Inc.
Aneel Bhusri
Co-Founder & CEO
Workday, Inc.
Robert F. Smith
Founder, Chairman and CEO
Vista Equity Partners
Hikmet Ersek
Chief Executive Officer
Western Union
Michael J. Kasbar
Chairman, President and
CEO
World Fuel Services
Corporation
Curt Morgan
President & CEO
Vistra Energy
John F. Barrett
Chairman, President & CEO
Western & Southern Financial
Group
Jim Kavanaugh
CEO
World Wide Technology
Stefano Pessina
Executive Vice Chairman
and CEO
Walgreens Boots Alliance
Marc Bitzer
Chairman and Chief
Executive Officer
Whirlpool Corporation
Doug McMillon
President and CEO
Walmart, Inc.
Alan S. Armstrong
President and Chief Executive
Officer
The Williams Companies, Inc.
Patrick Decker
President and CEO
Xylem Inc.
Charles W. Scharf
Chief Executive Officer and
President
Wells Fargo
Abidali Z. Neemuchwala
CEO & Managing Director
Wipro Limited
Anders Gustafsson
Chief Executive Officer
Zebra Technologies
Corporation
John Visentin
Vice Chairman and Chief
Executive Officer
Xerox Corporation
Kristin Peck
Chief Executive Officer
Zoetis Inc.
Michael Roman
Chairman of the Board and
Chief Executive Officer
3M
Project 2: Business Obligations
BMGT 496 – Project 2: Business Obligations
Purpose: In this project, you will discuss and analyze the arguments for
and against Milton Friedman’s thesis that the only purpose of business is
to make money. You will apply the arguments for and against to a
specific ethical issue that you have previously discussed in a weekly
discussion.
Learning outcome met by completing this project:
Identify ethical issues that arise in domestic and global business
environments using an understanding of ethical concepts and of legal
and business principles.
How to Set Up the Paper
Create a Word or Rich Text Format (RTF) document that is doublespaced, 12-point font. The format should be in memo form. The final
product will be between 8-10 pages in length excluding the title page
and reference page. Write clearly and concisely.
Instructions:
You serve as the assistant to the very recently appointed CEO of a
prominent start-up that is beginning to grow rapidly. The new CEO, Tara
Richmond, is a former general who gained visibility in the military for her
outstanding leadership qualities. Since her arrival, the Board of
Directors has had spirited debates on several proposals that would
increase corporate profits but would work to the disadvantage of some
members of the public as well as other stakeholders. Some members of
the board are arguing that the only obligation the company has is to
make profits for the stockholders. Other members of the board are
arguing that the company has an obligation to the community and to
stakeholders other than just the stockholders.
Your boss is baffled by the debate. “When I was in the military, my duties
to others were clearly laid out. Here, I am unsure to whom the company
owes a duty.” She turns to you for advice, requesting that you draft a
memo that explains what the company’s ethical obligations are in
situations like these. She asks you to start with Milton Friedman’s
opinion piece in 1970, arguing that a company’s only ethical
responsibility is to make profits. That can be found here.
She also asks you to review a much more recent memo from the Business
Roundtable that takes a more expansive view of the responsibilities of a
company. The Business Roundtable consists of CEOs of Fortune 500
companies, many of whom are familiar names to her. That memo can be
found here.
You should do additional research on arguments for and against
Friedman’s proposition. Respond to the following prompts:
1. Explain Milton Friedman’s arguments supporting that a company’s
only obligation is to make money.
2. Explain the arguments contrary to Friedman’s position including
where the Business Roundtable stands as well as other arguments
you find in your research.
3. Using one of the ethical issues that you posted in classroom
discussions, illustrate for the CEO, how that issue would be
resolved using Friedman’s perspective and how it would be
resolved using the perspective of the Business Roundtable.
4. Which of these positions do you find most compelling and why?
Your memo should begin with an introduction and end with
a conclusion where you make recommendations to the CEO.
Course Material and Research
You are expected to explain the ‘why and how’ of a situation. Avoid
merely making statements but close the loop of the discussion by
explaining how something happens or why something happens, which
focuses on importance and impact. In closing the loop, you will
demonstrate the ability to think clearly and rationally showing an
understanding of the logical connections between the course material
and the question(s) being asked. Using one or two in-text citations from
the course material throughout the entire paper will not earn many
points on the assignment. The support must be relevant and applicable
to the topic being discussed. Points are not earned for mentioning a term
or concept but by clearly and thoroughly explaining or discussing the
question at hand.