Riordan Manufacturing Strategic Plan
Two schools of thought address the responsibilities of an organization. Milton Friedman provides a traditional view of the responsibilities by stating “There is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception of fraud (Wheelen, 2010)”. Friedman believed that an organization should only be concerned with profit. Archie Carroll however, believed that an organization has responsibilities beyond itself, and that the profits that a company makes are the means to satisfying these responsibilities. Carroll proposes that organizations have four areas of responsibility. Listed in Carroll’s order of priority these areas are; economic, legal, ethical, and discretionary. Carroll’s proposal requires that organizations must meet its economic responsibilities by producing products for purchase and the repayment of its creditors.
Meeting legal responsibilities, the rules and regulations that the organization must follow as stated by governments are also a requirement. Ethical responsibility is considered to be something that an organization should do. Ethical responsibility includes considering the beliefs and behaviors of the society in which the organization conducts business. Carroll defines discretionary