Philosophy Quiz 3

What is Milton Friedman’s main claim?

The only social responsibility of business is to increase profits for shareholders.

Why does Friedman say corporations don’t have responsibilities?

Corporations are not persons; only individuals have moral responsibilities.

Who has responsibility in a corporation according to Friedman?

Corporate executives as individuals.

What is the role of a corporate executive?

To act as an agent for shareholders and maximize profits.

What limits does Friedman place on profit-making?

Follow the law and basic ethical customs (no fraud or deception).

Why is corporate social responsibility (CSR) problematic for Friedman?

It spends shareholders’ money without their consent.

What does Friedman compare CSR to politically?

Taxation without representation.

Why does Friedman think CSR undermines democracy?

It gives businesses power that belongs to elected officials.

How do markets benefit society according to Friedman?

Indirectly through profit-seeking and the invisible hand.

What is Mackey’s main disagreement with Friedman?

Profit is not the only purpose of business.

What is conscious capitalism?

A system where businesses pursue higher purposes beyond profit.

What are stakeholders?

All groups affected by a business (employees, customers, community, environment, investors).

How should businesses treat stakeholders?

Balance and create value for all stakeholders.

Does Mackey reject profit?

No, profit is necessary but not the only goal.

What is a higher purpose in business?

A mission beyond profit, such as improving lives or sustainability.

How does conscious capitalism improve markets?

It amplifies the positive effects of free markets.

How does Mackey view human motivation?

People are motivated by purpose, not just money.

What is Jan Narveson’s main claim?

Free markets are the best way to protect the environment.

What rights are most important to Narveson?

Property rights.

Do we have environmental responsibilities according to Narveson?

No, only obligations not to violate property rights.

How does Narveson think pollution should be handled?

Through lawsuits by those harmed.

Why does Narveson oppose regulation?

It interferes with freedom and property rights.

When does Narveson allow regulation?

In extreme cases like nuclear waste risks.

What is Narveson’s view on government?

It should mainly enforce property rights.

How do markets control pollution according to Narveson?

Through individual cost-benefit decisions.

What is Tony Smith’s main claim?

Free markets alone cannot adequately protect the environment.

What is the Tragedy of the Commons?

Individuals overuse shared resources, leading to depletion.

Why do markets fail with the environment?

They ignore externalities like pollution.

What is an externality?

A cost or benefit not reflected in market prices.

Why does Smith criticize lawsuits as a solution?

Individuals lack resources to fight corporations.

What problem exists in assigning value to harm?

Corporations assign monetary value to human life.

What role should government play according to Smith?

Regulate markets and protect environmental rights.

What right does Smith emphasize?

The right to a livable environment.

Why should corporations be regulated?

They benefit from government support.

What is Michael Sandel’s central question?

Are there moral limits to markets?

What are the two main objections to markets?

Fairness and corruption.

What is the fairness objection?

Markets can exploit inequality.

What is the corruption objection?

Markets can degrade or change the meaning of goods.

What does Sandel mean by corruption?

Putting a price on something can change its value or meaning.

What is an example of something that should not be for sale?

Votes, human organs, or friendships.

What is a market society?

A society where everything is up for sale.

What does Sandel warn against?

Expanding markets into all areas of life.

What is West’s main claim?

Even consensual sex can be harmful.

Why might someone consent to unwanted sex?

Social pressure, fear, or power imbalances.

What is a key harm West identifies?

Emotional, psychological, or dignity-related harm.

Why are these harms often overlooked?

People assume consent means no harm.

What cultural issue contributes to misunderstanding?

Equating legality with morality.

What is West critical of?

The idea that all consensual interactions are harmless.

What broader issue does West highlight?

Power imbalances in relationships.

What is the invisible hand?

Self-interest in markets can unintentionally benefit society.

What is the division of labor?

Specializing tasks to increase efficiency.

What is the difference between stakeholder and shareholder?

Stakeholder is anyone affected; shareholder is an owner/investor.

What is the Prisoner’s Dilemma?

Individual self-interest leads to worse outcomes for everyone.

What are commons?

Shared resources accessible to all.