P-M-I CHART

Instruction: In the Interesting box, write down how each view contributes to achieving organizational
success. In the My decision box, write down your recommendation on the effective approach that must
be employed by global or local companies to achieve organizational success.

Friedman’s Traditional View Carroll’s Four (4) Responsibilities of Business

Plus ( Advantages) Minus (Disadvantages) Plus ( Advantages) Minus (Disadvantages)

• Increase profits. • Good corporate • Maximiing profits, • Ethical must

citizens perform minimizing costs, plan not come first.
• Increase cost equally well in for the future provide It should
of products. market. shareholders with fulfilled after
• Exclude entire sufficient and attractive legal.
• Reduce profits in segment of socially return. • Fails to
a short run. conscious investors. • Responsible for consider the
• Good business sense being profitable. analysis and
• Potential of discord to avoid alienating • Responsible for modification.
with shareholders. stakeholders. being moral and
firm.
INTERESTING INTERESTING
There is only one social responsibility and -To increase revenues for a long period.Because it
discretionary responsibility that society expects explains how and why businesses should satisfy their
of business: to use its resources to grow profits as social responsibilities, it assists managers in
long as it follows the rules of the game, that is, understanding the various types of obligations that
competes openly and honestly without deception society expects of them. It is simple and easy to
or fraud. understand, and it helps in the fulfilment of ethical
responsibilities in the workplace by taking actions. It also
focuses on the organization's obligations and
responsibilities, rather than only profit maximization. It
also emphasizes the importance of fair competition free
of deception or fraud.

MY DECISION
There is only one social responsibility of business: to use its resources in an open and free competition and
to engage in activities that are not deceptive or fraudulent. By taking acts, it can raise its profits as long as it
follows the rules that society respects. This was to say, it engages in open and unrestrained profit
maximization.