The Market Failure Model Of The Modern Corporation Essay

The Market Failure Model in the Modern Corporation The extent to which a business should practice corporate social responsibility is a continuing debate in modern society. Only providing services or selling products no longer constitutes a successful company, as there are expectations for firms to behave in a manner that is consistent with public policy. This creates a philosophical dilemma for corporations who wish to maintain positive relations with society, but not impede on their internal operations. The question becomes if corporations today can engage in business strategies that are both ethical and profitable. In this paper I will argue how the market failure model suggested by Joseph Heath best justifies corporate social responsibility for modern businesses; showing how both ethical and profitable strategies are achievable. To begin, I will examine how Heath defends the ‘pursuit for profit’ approach as a legitimate, as long as it adheres to market principles he outlines. Next, I will discuss the legal distinction where corporations must push the boundaries of law to achieve more ethical ends. Having defended these positions, I will then compare Heath’s theory to those of Milton Friedman and R. Edward Freeman. In specific I will explain why the rival arguments are ill-fit with the contemporary business world, while the market failure model is progressive in the same context. This will attest to the dominance of Heath’s argument to theories that have long governedShow MoreRelatedEssay on Laissez-Faire Economics865 Words   |  4 Pagessleek, black phone with 4G c apabilities. Two months later the next phone in that series is out; it is almost an exact clone of the first model with the most moderate changes, and suddenly Tommy’s phone is obsolete. There was no great improvement when compared to the old model, no; the corporation knows that it will sell, no matter how small the improvement. 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