http://www.economist.com/node/21551498
Working conditions have always been an issue in factories based in Asia. Alan Hassenfeld, a driving force behind the International council of Toy industries, says that a challenge of practicing a business ethically is the fear of corruption. In this case, businesses discard the values of others and focus on the values and benefits for the shareholders, similar to what Friedman states in his article. However, over the past decade; companies such as Nike and Apple have been working towards improving harsh conditions and hours. Nike is the largest advocate in improving working conditions in factories based in china. They believe its approach of good labor and environmental practices boost profits. Criticism and pressure from the public proved to be beneficial for both the companies’ social responsibility and profit.
This article directly relates to the concepts explained by both R. Edward Freeman and Milton Friedman. The Stakeholder Theory suggests that the purpose of a business is to create as much value as possible for shareholders while keeping the interests of customers, employees, suppliers, communities, and shareholders. The key for a business to make profit and still maintain it’s social responsibility is to find a medium between the values of a shareholder and those of the employees, communities, and suppliers.