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

Management - Essay ExampleSince then, the moot has been on in favour and against of the thought and more(prenominal) particularly to find the right balance where loot really benefit the society. Counter extreme to the argument was the concept of Corporate Social Responsibility which give tongue to that businesses be required to respond to societal needs in other forms as well than nevertheless earning profit to maximise employment. Businesses have to some extend accept this counter thought with further elongation in idea regarding maximising shareholder and owners riches and many other hero sandwich ideas. However, the finding of the real right balance between the corners is yet being debated as no throwaway has yet been developed to perfect solution. PRIMARY OBJECTIVE OF MANAGEMENT- THEORATICAL REFERENCES AND THEIR ANALYSIS To state in one time primary objective of the business is to benefit society, at the same time remember the fact that owners and shareholders are also part of society and hence, not at the personify 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 raw material idea of Friedman who stated that the aim of business is to achieve maximal profits within boundaries of justness and this is how society is benefitted, one finds this idea satisfactory unless there comes any law that does not support societal chase or even more questioning does there outlast any law that goes against the interest of society? All the laws are made 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 taking it to the point that contrast to the societal concern and scope of debate enlarged in direction of benefit of firm or society as whole and how it should be transferred. Considering this school of thought, more appropriate and concrete th ought requires it be benefit or wealth of all stakeholders, where stakeholders include all(prenominal) person who is directly 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 Marks and Spencer. UK retail big with globular existence recent matter charging higher 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 people joined the elbow grease for protest. The protest ultimately forced the giant to bow down accept the decision as their mistaking 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 onl y aimed to cover the excess cost incurred on the product, that would have added to its profitability , though in its several(prenominal) share only. While, people who protested just joined the cause for bias attitude towards certain people and of word form not all were affected by the decision. Hence, what needs be made 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 lie in levels. Firm