Friedman & Freeman Unite

Friedman & Freeman Unite Abstract Friedmans theory of maximizing profit for the stockholder is related to Freemans stakeholder theory. When examining both from several different viewpoints: Adam Smith, Utilitarianism, Corporate Social Responsibility (CSR), and a long-term approach; Freemans stakeholder theory is the evolution of Friedmans theory. A brief overview of Corporate Social Responsibility is given, as well as critique of Friedman and Freemans theories, before the connection is made. Concluding the paper, Peter Senges model of shareholder value is argued as the perfect model for todays corporations that wish to implement Friedmans profit maximizing model with Freemans stakeholder theory.

Friedman & Freeman Unite Introduction America is based around pursing ones own self-interests. This is how America became great. Many of the greatest inventions and companies have been developed because of selfinterest. No society runs on anything else; Communists, Socialist, Democratic, they all run on different forms of self-interest. In essence the world runs on greed. Milton Friedman put it best, The world runs on individuals pursing their separate interest. The great achievements of civilizations have not come from the government; Einstein did not construct his theory from an order from bureaucrat, Henry Ford didnt revolutionize the automobile industry that way (Friedman, Greed, 1979). Self-interest is dying, though. Friedmans theory of maximizing profit for the stockholders is fading. Companies that only pursue profit will not last long in todays economic climate. Friedmans theory may seem out dated, but in reality his theory is simply evolving. People believe in Freemans stakeholder theory as the new alterative to Friedman. A theory that considered not just the stockholders, but employees, customers, partners, governments, environments, and the list goes on. While this theory may seem to trump Friedman, it simply reinforces the theory of profit maximization. This paper will connect the two theories and reveal that Friedmans theory is alive today. The two theories do require certain parameters, Adam Smith, Utilitarian ethics, greed, and a long-term focus, are key elements that link the theories. The example of Corporate Social Responsibility finalizes the linking Friedman and Freeman together, as the realization that Friedmans theory naturally requires companies to evolve to Freemans theory.

Friedman & Freeman Unite The Friedman Approach Milton Friedman is an American Economist that believed in the free market system. One of Friedmans most influential and controversial theorys states that business sole responsibility is to maximize profits for the stockholders, known as stockholder theory. Critiques believe that Friedmans approach leaves out the social responsibility of businesses, due to the focus only on stockholders and profit. There is evidence to support such claim. Friedman believes that only people have responsibilities and though Corporations are artificial persons that may have artificial responsibilities, business as a whole cannot be said to have responsibilities even in this vague sense (Friedman, 1970). This thought process focuses on an owner/stockholder relationship maximizing profit, and minimizing corporate social responsibility. The Friedman view of a construction process would focus on the owner/shareholder gaining the highest quality facility, lowest price, an in the shortest amount of time (Moylan, 2005, p. 33). Bidding arena for construction services ensures the need for the companys shareholder; i.e. maximizing the return on their investment (Moylan, 2005, p. 33). Stockholders provide the capital through their stock ownership, which the construction companies then spend (Moylan, 2005, p. 33). The companies that produce the building on time and within budget will succeed. This bidding results in the contractor receiving a fair price and the owner of the home receiving a fair price. This example, according to Friedman, is a perfect representation of the capitalist system working, benefiting all. Friedman did not just focus on profits, and neither was self-interest considered selfishness (Cosans, 2009, p. 392). Instead selfishness and self-interest are, The principle of freedom, i.e. the absence of coercion (Cosans, 2009, p. 392). Friedman also believed that the

Friedman & Freeman Unite corporate executive had immediate responsibilities to the owners of the company, in a publicly held company that would be the stockholders, To conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of society, both those embodied in law and those embodied in ethical customer (Cosans, 2009, p. 392). This means profit is not the ends in themselves, but the reason why executives are obligated to increase profits. This does not limit Friedmans theory only towards profit. If the stockholders demanded Corporate Social Responsibility then the executives would be obligated to stockholders to develop CSR. The Freeman Approach R. Edward Freeman is an American philosopher that did extensive work on stakeholder theory. This theory is based on a company addressing morals and values when managing the organization. Unlike stockholder theory, which Friedman believed in, the bottom line or profit is not the only concern for the company. Stakeholder theory integrates resource-based views, market-based views, political views, and societal views (Freeman, 1986). These different viewpoints are used to create a specific stakeholder of the corporation. This allows the company to determine how the different stakeholders should be treated (Freeman, 1986). There are 9 different groups of
Figure 1: Stakeholders

stakeholder (Figure 1), but there can be many subgroups (Figure 2).

Note: PSU. (n.d.). Camera Project. Retrieved 2 17, 2010, from http://sites.google.com/a/psu.edu/group-8/_/rsrc/1235590867668/ Home/camera-project/stakeholders/Stakeholder_(en).png

Friedman & Freeman Unite

Figure 2: Coca-Cola Stakeholders

Note: Coca-Cola Enterprises Inc. (2006). Engagin with our Stakeholders. Retrieved 2 17, 2010, from Coca-Cola Enterprises Inc.: http://images.google.com/imgres?imgurl =http:/ /w ww.cokecce.com/brochures/cce_2005/images/stakeholder_graph.jpg&imgrefurl=http://www .cokecce.com/brochures/cce_2005/10_engaging.html&usg=__ZYARTDj6-03B9sCkFE5ZXAvCoM=&h=556&w=587&sz=118&hl=en&start=14&um=1&it

The Freeman view of a construction process requires ethical integrity and safe guards when the bidding process is used (Moylan, 2005, p. 33). The bidding must be open to all contractors that are responsible bidders that posses the required expertise, financial capacity and management skills (Moylan, 2005, p. 33). The bidder must be responsive and cooperate with the owner, architects, and engineers during the bidding, construction, and commission phases (Moylan, 2005, p. 33). The owner (stockholder) must commit the necessary time and resources to the project (Moylan, 2005, p. 33). The architect and engineer must design the facility that meets the owners needs, while the contractor must provide the necessary tools to make sure the facility comes to completion (Moylan, 2005, p. 33). When the owner, architect, and engineer 6

Friedman & Freeman Unite work harmoniously together it benefits the tenants and users of the facility. The proper construction of the facility allow the corporation to generate revenue and give its profits back to the owner (stockholder), while the community in which the facility is located benefits, receiving services, living space, etc. (Moylan, 2005, p. 34). Corporate Social Responsibility Corporate Social Responsibility or CSR is a relatively new development. The public and governments of the world have been steadily increasing pressure on corporations to increase their CSR. The Kennedy School of Government defines Corporate Social Responsibility as, Encompass not only what companies do with their profits, but also how they make them. It goes beyond philanthropy and compliance to address the manner in which companies manage their economic, social and environmental impacts and their stakeholder relationship in all their key spheres of influence: the workplace, the marketplace, the supply chain, the community and the public policy realm (Beth Kytle, 2005, p. 9). Companies have realized that to increase their market share or keep their market share, they must adopt CSR. While Freemans theory supports CSR, Friedmans theory seems to dismiss CSR as a waste of corporate funds. In reality, both Freeman and Friedman support CSR, however, they connect very different. Where Freeman sees it as a responsibility to take care of all the stakeholders, Friedman believes in maximizing profit for the stockholders. In todays economic environment, in order to maximize profit, CSR is required. Adam Smith: Bringing Friedman and Freeman Together Adam Smiths, Wealth of a Nation has two important ideas; invisible hand and selfinterest. In todays society, we are interconnected globally through commerce. These forces have created a world of interdependence between nations. Understanding Smiths theory

Friedman & Freeman Unite on the civilizations and economics requires analysis of, invisible hand and self-interest. The invisible hand represents how the market regulates itself. If a consumer is left to choose between products, the choice will be appropriate for their situation. As a result, the product and productions best represent the market demand locally. Smith believed that capital would stay local and foreign trade would be limited to countries absolute advantage (Smith, 1904). This does not address competitive advantage between nations, the ability to produce at a lower marginal cost and opportunity cost. Smiths absolute advantage only addresses the ability to produce at a lower absolute cost. Companies today operate more on competitive advantage, where as nations operate more and more towards absolute advantage, for example, China has cheap labor, India has I.T., Japan has technology, and America has services. Each countrys adoption of absolute advantage has resulted in interdependence between nations. Since companies search for competitive advantages they then look to each countries absolute advantage. This search has lead to country specific absolute advantages. This has created a world that is connected greater due to companies spreading out their resources to gain competitive advantage through absolute advantages. America would fail if China did not produce cheap goods, but China would fail if America did not purchase the goods. Some of the Arab nations would fail if the western world where not dependent on oil. Smith talks about self-interest, which division of labor and the indivisible hand are reliant on. The reason being, the invisible hand is self-regulating markets, division of labor is the specialization of separation of tasks to increase production, each of these is created through selfinterest of; competition, and supply and demand (Smith, 1904). Ford did not think about the worker when designing the assembly line, we was driven by self-interest to make the most

Friedman & Freeman Unite money possible. By companies becoming international, price of production has dropped, selling goods has increased, and brand recognition has increased, all epitomes of self-interest. How do self-interest and the invisible hand connect Friedman and Freeman? Friedman refers to the self-interest of each person resulting in the greatest gain for society. Each persons self-interest results in the maximization of society. Friedman uses the pencil as an example; breaking it down into separate parts: lead, wood, metal facet, and eraser. The wood from which is made comes from Washington, which required a saw. The saw required steel, which required a steel mill. The steel comes from a mine. To run the engines fuel is required (Pen, 2008). Each of these different parts required to produce the pencil required self-interest from around the world. The greatest and most important self-interest was the consumer, for demanding a writing utensil such as a pencil. Freeman believes in looking at all aspects of the business (stakeholders). The stakeholder theory analysis who the stakeholders are, what they want, and how they will be affected. This relates to Adam Smith through the invisible hand and the dictations of selfinterest of our society. For example in our current society people are demanding that corporations are socially responsible. This has resulted in companies addressing this goodwill, charity, and environmental concerns. With the current social demands, people expect these things, and thus companies must deliver. Through 2003 to 2007, Hummer sales where very strong, as people demanded large vehicles (General Motors: J.D. Power and Associates, 2008). As the economy slowed down, people shifted to smaller, fuel efficient vehicles (Figure 3).

Friedman & Freeman Unite

Figure 3: Hummer Sales from 2001 2008

Note: General Motors: J.D. Power and Associates. (2008). Hummer Slaes Falling Flat. Retrieved 2 18, 2010, from Daylife: http://www.daylife.com/photo/0dNpb4Efy5eEE

Utilitarians Unite To connect Freeman and Friedman we must assume a Utilitarian viewpoint. In this case Freemans stakeholder theory is focused on the majority. Friedmans stockholder theory also becomes focused on the majority. By focusing these theories with the Utilitarian viewpoint, they relate to each other perfectly. Utilitarianism focuses on the ends to justify the means, and that he majority is more important than the minority. For example, if a new drug saved a thousand people and killed ten people, this situation would be acceptable to a Utilitarian. Analyzing how Freidman and Freeman connect, an example of a t-shirt company will be used. Friedman would believe that the company must make as much profit as possible for the stockholders, while obeying the laws. Freeman would want the t-shirt company to figure out how it could affect the different stakeholders. In this case, the two largest stakeholders would be 10

Friedman & Freeman Unite the employees and the customers. The company in attempting to generate as much wealth as possible creates the best outcome for the employee and the customer. If the company were to charge too much for their t-shirts then customers would not purchase them and the employees would not receive their salary. The stockholder of the company would not receive an adequate compensation for their investment. If the company were to only focus on profit and the stockholders (Friedman), they would have to address the customer and the employee. If they charge too much, make no money, or if they do not pay the employees enough there will be no one to produce the t-shirts. Even if the company shifted towards a stockholder (Freeman) viewpoint, they still must address the customer and employees. In both cases, the Friedman and the Freeman theories result in the situation being addressed from different viewpoints, but focusing on the same groups, employees and customers. Long-Run Connection: Greed Connects Us Freemans and Friedmans theories are also connected when both theories are used for a long-term goal. Friedmans theory, if only used for a short-term gain, will result in the stockholders of the company profiting, but the collapse of the company ultimately. An excellent example of this is WorldCom, once a strong telecommunication company. They crumbled amidst corruption; overstating its cash flow by a total of $3.8 billion for the 2001and the first quarter of 2002 (Ackman, 2002). The company also was giving founder Bernard Ebbers fourhundred million in off-the-books loans (Patsuris, 2002). Eventually another $3.3 billion of improperly booked funds was found during the investigation (Patsuris, 2002). WorldComs total restated funds were $7.2 billion, with a possible $50 billion goodwill charge (Patsuris, 2002). In

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Friedman & Freeman Unite this case WorldCom focused only on the short-term gain of profit and even though they could have been helping the community, their ultimate goal was profit. Friedmans theory is based on adapting to the current economic climate, a long-term focus. During the thirties through the seventies, unions where very strong, the economic climate against big business and giving more power to the workers. That climate has shifted towards people concerned with the environment, community, global issues, etc. Friedmans theory is based on evolution, The claim that the executive will generally, but not always, be striving to make money, also requires that the executive needs to identify those particular situation in which the stockholder would not desire maximizing profits (Cosans, 2009, p. 392). Many stockholders realize that to maximize profit is to make sure the community is supportive of your company. If a company simply ignored this, profit would decrease drastically. Corporate Social Responsibility is important in todays economic climate, which is why companies participate. When the company gives millions of dollars away for CSR, they increase their profit. According to Towers Watson Organization reputation in the community and their social responsibilities are critical (Figure 4). This long-run focus results in Friedmans theory of profit maximization, in order to adapt to the economic climate to keep profit maximization. This is where the Freeman theory is implemented. The current economic climate demands CSR and Freemans theory incorporate CSR. This means that to continue profit maximization with the Friedmans theory, companies need to adopt and implement the Freeman theory. The Freeman theory does not try and change the current system, He does not seek the demise of the modern corporation, rather he seeks its transformation (Stieb, 2009, p. 404).

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Friedman & Freeman Unite

Figure 4: Organizations Reputations in the Community

Note: Towers Watson. (2008, July). Corporate Social Responsiblity: It's No Longer an Option. Retrieved 2 18, 2010, from Towers Watson Archive Site: http://www.towersperrin.com/tp/showdctmdoc.jsp?country= globa l&url=Master_Brand_2/USA/News/Spotlights/2008/2008_07_30_Spotlight_Corporate_Social_Responsibility.htm

Corporate Social Responsibility: The Connection A more complex example would be concerning Corporate Social Responsibility. Friedman theory would seem to ignore any responsibility other then profit. This is not true, Friedmans theory emphasis making the stockholder happy, While there is no doubt this formulation of executive duty emphasizes money, it also indicates a duty for the executive to evaluate and consider non-monetary factors in his or her decision making. The claim that the executive will generally, but not always, be striving to make money, also requires that the executive needs to identify those particular situation in which the stockholder would not desire maximizing profits (Cosans, 2009, p. 392). First National Bank is a perfect example of Friedman theory being used not just for profit but CSR (Michigan Banker, 2010, p. 5). The bank is helping youth in foster care to establish financial security by establishing investment account, bank account, and other financial securities that allow the youth in foster care to proceed to college (Michigan Banker, 2010, p. 5). 13

Friedman & Freeman Unite This example illustrates how Friedman and Freeman connect. The bank is security in the youths future. Meanwhile gaining great publicity, helping the community, and giving back to the community that has helped them thrive. The stockholders of First National Bank are concerned with non-monetary factors (Cosans, 2009, p. 392). Even if the stockholders were only concerned with self-interest and profit, they realized that helping the community would increase the profit. Good publicity will usually result in satisfactory results and growth. In the case of First National Bank even if profits were lower due to their activity, as long as the stockholders approved, Friedman would approve, Corporate charitable contribution to charities favored by the stockholders even if the contribution reduces profits. The bottom line for Friedman is that because the company is the shareholders property, the executive has a responsibility to try to do with the company whatever the shareholder wish (Cosans, 2009, p. 393). Freeman theory would examine the First National Bank as addressing all their stakeholders. The largest would be the community they service. While Freeman theory is not solely concerned with profit it still is has a central role, I can revitalize the concept of managerial capitalism by replacing the notion that manager have a duty to stockholders with the concept that manager bear a fiduciary relationship to stakeholder and the crux of my argument is that we must reconceptualize the firm around the following question: For whose benefit and at whose expense should the firm be manger (Stieb, 2009, p. 403). The First National Bank must still address the question that Freeman asks. In this case the bank and the community benefits. The community benefits in the short and long run, if the program is successful. The bank benefits short term from good publicity, and in the long run if a foster care youth succeeds and continues to bank with them. If the stockholders were only concerned with increase in profit short term, and did not care at whose expense, they could hike14

Friedman & Freeman Unite up rates, but customers would have gone elsewhere. If the stockholders were concerned with long term gain, they would enact this program and build community support and loyal customers. Peter Senges Model: Maximizing Profit and Corporate Social Responsibility Peter Senge introduces the The Four Elements of Shareholder Value. Originally developed by Stuart Hart and Mark Milstein, the vertical axis represents time while the horizontal axis represents space (Senge, 2008, p. 120). The vertical axis for a business represents organizations need to manage businesses in the present while creating technology and markets for the future. Congruently, the horizontal axis for business represents the firms needs to grow and protect internal organizational capabilities and incorporating new perspective and knowledge from the outside (Senge, 2008, p. 122). These two axes reflect the tensions between staying focused on core operations and remaining open for fresh perspectives and new ideas (Senge, 2008, p. 122). Tomorrow Innovation and Repositioning Growth Path and Trajectory

Internal

Shareholder Value

External

Cost and Risk Reduction Today

Figure 5: Traditional Shareholder Value

Reputation and Legitimacy

Note: Senge, P. (2008). The Necessary Revolution. New York, New York: The Doubleday Publishing Group. Pg. 120

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Friedman & Freeman Unite These axes produce four distinct dimensions: risk reductions, reputation, innovation, and growth (Figure 5). Each of these quadrants is critical to shareholder value and the companies that perform well in all four quadrants maximize shareholder value over time by thinking comprehensively about their particular business (Senge, 2008, p. 120). Companies that focus on only one or two quadrants will perform poorly and will have missed opportunities. Senge introduces a different model based on sustainable value. This model is based on the same two dimensions, time and space, but now includes the social and environmental challenges businesses now face. There are three distinct parts, Strategy, Drivers, and Payoff; where Strategy and Payoff are connected (Figure 6). Drivers are the factors that help us as a civilization recognize each quadrant. The lower left quadrant represents the changes in industrialization (Senge, 2008, p. 123). The lower right

Drivers: Disruption Clean Tech Footprint

Sustainable Value Framework Tomorrow Strategy: Strategy: Develop the sustainable Create a Shared competencies of the roadmap for meeting Future unmet needs

Drivers: Climate Change Resource Dep. Poverty

Payoff: Innovation and Repositioning Internal Drivers: Pollution Material consumption Waste Strategy: Min. waste and emissions from operations

Payoff: Sustainable Growth Trajectory External Drivers: Civil Society Transparency Connectivity

Sustainable Value Strategy: Integrate stakeholder views into business process

Payoff: Cost and Risk Reduction Today

Figure 6: Senges Shareholder Value

Payoff: Reputation and Legitimacy

Note: Senge, P. (2008). The Necessary Revolution. New York, New York: The Doubleday Publishing Group. Pg. 122

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Friedman & Freeman Unite quadrant represents civil society stakeholders (Senge, 2008, p. 128). The upper left quadrant represents the trends of emerging technologies (Senge, 2008, p. 131). Finally, the upper right quadrant represents resource depletion, deteriorating ecosystems, climate change, and poverty (Senge, 2008, p. 131). Strategy and payoff are connected. Strategy is the way the corporations should go about change, and payoff is the reward for successfully implementing the strategy. Senge gives an example, Firms can create immediate value by reducing the level of material consumption and pollution associated with their activities (Senge, 2008, p. 133). The lower right quadrant represents the growth of stakeholders power. Senge believes that being open and honest with the stakeholders of the company will improve the companys bottom line, Moreover, companies that operate at greater levels of transparency and responsiveness to the publics desire for sustainable practices will see the direct impact of improved brand image on their bottom line (Senge, 2008, p. 128). Freeman theory is focused on taking care of stakeholders, as a duty of corporations. Friedmans theory only focuses on maximizing profit for stockholders. Senges model brings both the theories together; satisfying the stakeholder and stockholders of the company. The upper left and lower left quadrant represents how corporations are recognizing change in the environment and our society (Senge, 2008, p. 131). Corporations recognize this and are attempting to innovate and push new technology because consumers are demanding it (Senge, 2008, p. 131). Companies must recognize and adapt Friedmans theory, as well as incorporate Freemans theory; embodied by Senges model. Friedmans theory based on the current economic environment and reflects Senges model of how to maximize profit.

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Friedman & Freeman Unite The upper right quadrant represents sustainability and requires that all other three quadrants be fulfilled first to reach this quadrants goal (Senge, 2008, p. 131). Firms can create value by pursuing sustainability-related opportunities, a long-term focus. Friedmans theory is based on this and in the current economic environment companies must incorporate Freemans theory. If companies can successfully shift with their environments they will continue to maximize profit. If in twenty years CSR and stakeholder theory may not be important, companies must be able to shift with what is viewed as important according to the social and economic climate. For example, if a society believes that high wages is critical at any cost; companies should find ways to increase profit, in order to increase wages. The increase in wages will result in positive publicity. This publicity will result in maximizing profit. Conclusion America will not change; it will always be based on self-interest and greed. Not necessarily a problem. Many great things have come from these two character traits. Friedman believed in a free-market, capitalist market, and Freeman believes in the same system encompassing corporate responsibility. Their theories are not different when they are focused on the end result; in fact Freemans theory is based on Friedmans theory. Friedman is concerned with profit maximization for the stockholder, but he recognized that the corporation must evolve with the economic climate, the social needs and wants, and the viewpoints of society. If the corporation did not evolve then they would fail. This is where Freemans theory comes into play. His theory supports Friedman in the evolutionary track required for companies. Stakeholder theory directly contributes to long-term profit maximization for the stockholder. Corporate Social Responsibility is built on this principle.

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Friedman & Freeman Unite Peter Senges model incorporates Friedman and Freeman to give companies a chance at profit maximization and stakeholder theory. It addresses social, environmental, technological, governmental, corporation, stockholder, and stakeholder needs, all while still considering profit maximization based on the long-term. If a company can implement Senges model as their business model, the company will thrive. America is shifting, but it still is based on the founding principles of capitalism. For America to continue to flourish and for other capitalist countries to prosper, the movie Wall Street illustrates the point perfectly,

The point is, ladies and gentleman, that greed, for lack of a better word, is good. Greed is right. Greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed, in all of its forms: greed for life, for money, for love, knowledge, has marked the upward surge of mankind. And greed, you mark my words, will not only save companies, but that other malfunctioning corporation called the USA (Stone, 1987).

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Friedman & Freeman Unite Works Cited Ackman, D. (2002, 6 26). The WorldCom We Hardly Knew. Retrieved 12 30, 2009, from Forbes.com: http://www.forbes.com/2002/06/26/0626topnews.html Beth Kytle, J. G. (2005). Corporate Social Responsibility as Risk Management: A Model for Multinationals. Cambridge: Harvard University: John F. kennedy School of Government. Coca-Cola Enterprises Inc. (2006). Engagin with our Stakeholders. Retrieved 2 17, 2010, from CocaCola Enterprises Inc.: http://images.google.com/imgres?imgurl=http://www.cokecce.com/brochures/cce_2005/images/s takeholder_graph.jpg&imgrefurl=http://www.cokecce.com/brochures/cce_2005/10_engaging.ht ml&usg=__ZYARTDj6-03B9sCkFE5ZXAvCoM=&h=556&w=587&sz=118&hl=en&start=14&um=1&it Cosans, C. (2009). Does Milton Friedman Support a Vigorous Business Ethics? Journal of Business Ethics , 391-399. Freeman, R. E. (1986). Strategic Management: A Stakeholder Approach . Pitman Publishing . Friedman, M. (1979). Greed. (P. Donahue, Interviewer) Friedman, M. (1970, September 13). The Social Responsibility of Business is to Increase its Profits. Retrieved 2 18, 2010, from University of Colorado: http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html General Motors: J.D. Power and Associates. (2008). Hummer Slaes Falling Flat. Retrieved 2 18, 2010, from Daylife: http://www.daylife.com/photo/0dNpb4Efy5eEE Michigan Banker. (2010). First National Bank of Howell Helps Foster Care Youth Establich Financial Security and Build for the Future. Michigan Banker , 5-6.

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Friedman & Freeman Unite Moylan, W. (2005). Ethics in contruction Bidding: Considering the "Friedman" vs. the "Freeman" view. Nait Selected Papers , 32-36. Patsuris, P. (2002, 8 26). The Corporate Scandal Sheet. Retrieved 1 2, 2010, from Forbes.com: http://www.forbes.com/2002/07/25/accountingtracker.html Pen, M. F.-L. (2008, Aug 28). Power of the Market - The Pencil. Retrieved 2 17, 2010, from YouTube: http://www.youtube.com/watch?v=R5Gppi-O3a8&feature=related PSU. (n.d.). Camera Project. Retrieved 2 17, 2010, from http://sites.google.com/a/psu.edu/group8/_/rsrc/1235590867668/Home/camera-project/stakeholders/Stakeholder_(en).png Senge, P. (2008). The Necessary Revolution. New York, New York: The Doubleday Publishing Group. Smith, A. (1904). An Inquiry into the Nature and Causes of the Wealth of Nations. Retrieved 2 18, 2010, from Library of Economics and Liberty: http://www.econlib.org/library/Smith/smWN.html Stieb, J. (2009). Assessing Freeman's Stakehodler Theory. Journal fo Business Ethics , 401-414. Stone, O. (Director). (1987). Wall Street [Motion Picture]. Towers Watson. (2008, July). Corporate Social Responsiblity: It's No Longer an Option. Retrieved 2 18, 2010, from Towers Watson Archive Site: http://www.towersperrin.com/tp/showdctmdoc.jsp?country=global&url=Master_Brand_2/USA/ News/Spotlights/2008/2008_07_30_Spotlight_Corporate_Social_Responsibility.htm

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