IN a free‐enterprise, private‐property system, a corporate executive is an employe of the owners of the business. He has direct responsibility to his employers. That responsibility is 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 the society, both those embodied in law and those embodied in ethical custom. Of course, in some cases his employers may have a different objective. A group of persons might establish a corporation for an eleemosynary purpose-for example, a hospital or school. The manager of such a corporation will not have money profit as his objective but the rendering of certain services. In either case, the key point is that, in his capacity as a corporate executive, the manager is the agent of the individuals who own the corporation or establish the eleemosynary institution, and his primary responsibility is to them.
Milton FriedmanRelated topics
agent basic business case certain conduct corporate corporation course custom different ethical example executive free institution key law might money objective point possible primary profit property rendering school while RulesRelated quotes
Remember, every business firm, like even a mom and pop grocery store, is a market imperfection. A firm is defined in economic theory as a market imperfection introduced to deal with transaction costs. And the sort of theory is that the imperfections, the firms, are kinda like little islands in a free market sea. But the problem with that is that the sea doesn't remotely resemble a free market, and the islands are bigger than the sea; so that raises some questions about the picture. But these market imperfections, like a firm, or a transnational corporation, or a strategic alliance among them, this is a form of administering interchanges. And there's a real question about whether we want to accept that. Why, for example, should the international socioeconomic system, or for that matter our own society, be in the hands of unaccountable private tyrannies? That's a decision, it's not a law of nature.
Noam Chomsky
Once you give people the idea that all this can be done by the State, and that it is somehow second-best or even degrading to leave it to private people...then you will begin to deprive human beings of one of the essential ingredients of humanity-personal moral responsibility. You will in effect dry up in them the milk of human kindness. If you allow people to hand over to the State all their personal responsibility, the time will come-indeed it is close at hand-when what the taxpayer is willing to provide for the good of humanity will be seen to be far less than what the individual used to be willing to give from love of his neighbour. So do not be tempted to identify virtue with collectivism. I wonder whether the State services would have done as much for the man who fell among thieves as the Good Samaritan did for him? ...the role of the State in Christian Society is to encourage virtue, not to usurp it.
Margaret Thatcher
Free speech. Freedom of association. These values are repulsive to the radical Islamic terrorist. They fear them and suppress them whenever and wherever they can. Yet through those very means, we as a society are protective of that terrorist's rights. This is ironic, but good. Because, as you well know, America has a unique responsibility to set the global standard for liberty and fair conduct. The world looks to us to set high standards for freedom, and we take that leadership role very seriously. Our commitment to leading by example – on issues from human rights to free speech – is strong. Indeed, other countries strike a different balance between security and freedom, both in the activities they punish as crimes, and in the procedures with which they do so. In some instances, our allies have adopted or utilized some counterterrorism tools that we have not adopted in the United States because doing so would abridge the civil liberties protected by our constitution.
Alberto Gonzales
This is not a book about charismatic visionary leaders. It is not about visionary product concepts or visionary market insights. Nor even is it about having a corporate vision. This is a book about something far more important, enduring, and substantial. This is a book about visionary companies. What is a visionary company? Visionary companies are premier institutions -- the crown jewels -- in their industries, widely admired by their peers and having a long track record of making a significant impact on the world around them. The key point is that a visionary company is an organization -- an institution. All individual leaders, no matter how charismatic or visionary, eventually die; and all visionary products and services -- all "great ideas" -- eventually become obsolete. Indeed, entire markets can become obsolete and disappear. Yet visionary companies prosper over long periods of time, through multiple product life cycles and multiple generations of active leaders.
James C. Collins
First let us ask whether our wealth-creating agencies, particular that of industry, are to be based upon private enterprise of policy management. I can not see how any intelligent observer can have any possible faith in the capacity of political management to provide either stability or progress if it should set out to operate the agencies of wealth creation, particularly industry. It is my firm conviction that any form of 'Government Regulation of Business' is bound to result in an ever-increasing interference with the broad exercise of initiative - the very foundation of the American system. That is the natural evolution of bureaucracy. If that be so, might not the ultimate logical result be the necessity for the socialization of industry through the break down of the profit system induced by the accumulative effect of the ever-increasing political management. We do not need to go far afield to see definite evidences of that possibility.
Alfred P. Sloan