【正文】 involvement in board decisions by outside directors. There appears to be increasing pressure on boards to balance the economic goal of profitability with the social needs of society.ADDITIONAL DISCUSSION QUESTIONSA1. How appropriate is the theory of laissezfaire in today39。s world?Milton Friedman contends that it is very appropriate. The quote from his classic article, The Social Responsibility of Business Is to Increase its Profits does suggest a certain modification, however, to pure laissez faire. He states that business should work to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free petition without deception or fraud. These rules of the game form the crux of the argument. What should these rules be and who should municate and enforce them? This leads directly into Archie Carroll39。s contention that there are four responsibilities of business corporations: economic, legal, ethical, and discretionary. Pure laissez faire argues for economic responsibilities only. Friedman modifies laissez faire by presumably adding legal responsibilities. One could make the point that the rules of the game should include ethical responsibilities as well. The problem, of course, is what happens to the concept of laissez faire when one adds all these responsibilities to it and then expects business people at all levels to accept them without outside force? Does laissez faire as proposed by Adam Smith and argued by others include only economic responsibilities? If legal and ethical responsibilities are also expected by society of business corporations, is it still free enterprise laissez faire or some other kind of system?A2. How does a strategic vision differ from a corporation39。s mission?As stated in Chapter One, a corporation39。s mission is its purpose, or the reason for its existence. It provides the fundamental, unique purpose that sets the pany apart from other firms of its type and identifies the scope of the pany39。s operations in terms of products/services offered and markets served. It tells who the pany is and what it currently does. A corporation39。s vision, in contrast, is a description of what the pany is capable of being. It tells not what the pany is now (as does the mission), but what it is striving to bee. Whereas the mission is presentoriented, the vision is futureoriented. A corporation39。s mission statement typically includes both the corporation39。s mission and vision by stating what the pany is now and what it wants to bee.A3. Tobacco panies are increasing their marketing efforts in Third World countries. Faced with a decline in tobacco usage in the developed countries, these corporations are using their advertising expertise and political connections to open new markets in Japan, Taiwan, Thailand, and South Korea, as well as in eastern Europe. In light of the accumulating evidence regarding the link between tobacco use and cancer, should the strategic managers in these tobacco panies be criticized for taking socially irresponsible actions? Should the government declare the making and selling of tobacco products illegal?This question should stir up the class as nonsmokers debate against smokers (or chewers)! It may also serve to bring up the issue of selfinterest. Why do nonsmokers brand tobacco panies irresponsible while smokers do not? Is the concern for social responsibility partly an issue of who gets hurt? Insofar as the nonsmokers are concerned, ask them to deal with the question of freedom of choice versus personal health (similar to laws regarding auto seat belts and motorcycle helmets). Is any pany making a product (such as guns or knives), which can hurt people, socially irresponsible? Insofar as smokers are concerned, is their personal desire to smoke coloring their view of the tobacco panies39。 social responsibilities? Although it can be argued that the rights of current users of tobacco should be respected, is it appropriate that firms should try to attract new users who may not be aware of the risks of tobacco? Use the question of outlawing tobacco as a way of getting at the role of government in the relationship of business and society. Do otherwise laissezfaire, free enterpriseoriented students (who happen to be nonsmokers) call for government intervention on this issue? Try to get the students to assess the impact of their personal values and opinions on their social responsibility judgments.A4. Using Carroll39。s list of four responsibilities, should a pany be concerned about discretionary responsibilities? Why or why not?Except for a few diehard followers of Milton Friedman39。s philosophy, few people would agree that a business firm should fulfill only its economic and legal responsibilities and pletely ignore ethical ones. The same is not true of discretionary responsibilities, however. Since discretionary responsibilities are defined by Carroll as purely voluntary, there is no pressure by anyone for a business firm to fulfill them. One can argue, nevertheless, that there are three good reasons to undertake these kinds of responsibilities. The first reason is the morality rationale it may be the right thing to do, even though the pany may not benefit and may even be hurt in the short run. The second reason is enlightened selfinterest. If a firm undertakes a discretionary activity, it may gain shortrun advantages in the market place (., a pany offering free day care to its employees may attract more potential workers at lower wages). It may also serve as a role model for government to legislate if and when that responsibility moves from discretionary to ethical and finally to legal (and thus the firm is able to do things its way instead of the government39。s way). The third reason is also one of enlightened selfinterest. If a pany develops a reputation for voluntarily doing socially useful activities even though it gains