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The Fried Man Model Suggests That The CSR Should Be Only Used To Increase The Profit of Company

ACI Group introduced corporate governance practices in the early 2000s when it began expanding beyond its family-owned business roots. It established boards of directors and audit committees to oversee operations and ensure transparency and accountability. ACI Group benefits from corporate governance through increased investor confidence, sustainable growth, and succession planning to pass the family business to future generations. Maintaining family ownership provides continuity of vision and values while corporate governance structures promote professional management and compliance.

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Fidas Roy
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41 views3 pages

The Fried Man Model Suggests That The CSR Should Be Only Used To Increase The Profit of Company

ACI Group introduced corporate governance practices in the early 2000s when it began expanding beyond its family-owned business roots. It established boards of directors and audit committees to oversee operations and ensure transparency and accountability. ACI Group benefits from corporate governance through increased investor confidence, sustainable growth, and succession planning to pass the family business to future generations. Maintaining family ownership provides continuity of vision and values while corporate governance structures promote professional management and compliance.

Uploaded by

Fidas Roy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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NEW MODEL OF CSR

that model as it says it the latest model of Corporate Social Responsibility

As per that model in case financial capability of an economy is strong because of a strong ethical rooting

This is shown by first box

Ethical rooting are the roots on which a business organization is built up

These are the moral principles or standards of conduct based on which an organization functions

So in case we see this model at an organization level this means in case a business concern has strong
ethics it is more financially capable

This is depicted by the first box in the diagram given

So this model has been built up in order to instill the concept of CSR to all the stakeholders associated
with an organisation

Now talking about the second box it says that in case an organization is not following ethics it will not be
financially capable enough

Same is the case of the situation highlighted in the third and fourth box

That means only if an organization is having good ethics it will be financially capable and is said to
achieve Corporate Social Responsibility

Corporation means a at a big level while company runs at a small level

The Fried man model suggests that the CSR should be only used to increase the profit of company.

All the money used for CSR should be used in such a way that company should be benefitted from it.

While doing so, company should not use unethical practices.

This is core of The Fried man model.

Milton Friedman has explained the common behavior of spending money.

You will spend your money on you happily. But you should spend it wisely.
When you spend your money on other people , the spending will be challenging. It is not easy for people
to spend their hard earned money on others . So it is challenging.

basically spending money form company's profit, you are giving lower return to stakeholders. ( it is
spending people's money on people.)

and goal of every company is maximize wealth of investor.

new model of csr:


So the root is the business must have strong ethical roots to sustain financial stability

basically they are trying to say

that a business will only sustain financially in long run

if it has strong ethical presence

and does lot of CSR activities

Nature of social responsibility:


1. Practice Economic Social Responsibility: we should focus on
making profit with sustainability that we can make profit so
that’s its long term in future too
2. Practice Legal Social Responsibility: we should be following
labor laws and pay taxes so as to be completely legally
responsible
3. Practice Ethical Social Responsibility:  we should follow
morally right practices
4. Practice Discretionary Social Responsibility: we should take
care of the society and do action which increase welfare to the
society
ACI Group is a Family own firm, you should answer this topic related with ACI Group

1. How ACI Group( in Bangladesh) started corporate governance in their organization or when
corporate governance enter ACI Group.
2. How ACI group practices Corporate Governance?
3. How ACI group get benefited by corporate governance?
4. When ACI come to join Family own business?
5. Why need family own firm in the ACI Group?

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