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 most
effective approach that must be employed by global or local companies to achieve
organizational success.

Friedman’s Traditional View

Plus (Advantage) Minus (Disadvantage)

● The business could have more money
to invest in new product development.
● The business has more dividends to
give to its shareholders.
● The business becomes more efficient
by having its price decreased due to
the increased profit that they are
gaining, so they have enough money
to pay their resources.
● Hurt the corporate image in the
public’s eye.
● Businesses are interdependent on
elements in their ecosystem.
● Friedman disregards corporate social
responsibility in this approach.
● This concept does not have concern
for its environmental responsibility by
sustaining it.
● They don’t have actions to impact the
lives of individuals.
● Doesn’t have positive impacts on the
communities.

Interesting

Friedman’s traditional view of business responsibility is more focused on gaining profit, and
Friedman thinks that the only social responsibility of business is to use its resources and
engage in activities designed to increase its profits as long as they stay within the rules of the
game. Means that it engages in open and free competition without deception or fraud.
 Caroll’s Four (4) Responsibilities of Business

Plus (Advantage) Minus (Disadvantage)

● The four responsibilities he listed in ● By not managing it wisely, the social

order of priority are all great. It can and environmental activities while
balance management responsibility making profit can lead to bankruptcy
and environmental responsibility. without proper management skills and
● They can help and ensure that they strategies.
are complying with the legal
responsibilities of a business and
helping its people to be more flexible
and have additional knowledge by
working.
● Employees can apply what they learn
in the classroom to their workplace,
which allows the company to profit.

Interesting

This concept is great, like Carroll’s Four Responsibility of Business, because it balances being
responsible in your business and to your environment. It also ensures that your company
continues to follow the laws, thus fulfilling its legal responsibilities. With this, they can earn
profit while helping society; it’s a win-win situation. A business or organization that supports
social responsibilities can earn the trust of the person they are helping, while the people they
are helping can gain trust in the business.

My Decision

I’ am more willing to implement Archie Carroll’s Principle in my present place of work or in my

future business because I believe that a business organization must not only be concerned
with profit maximization alone but must also be concerned about its corporate social
responsibility, corporate citizenship, and sustainability. A business or organization must be
responsible enough to be concerned with the concept of environmental sustainability, like
pollution control and planting trees, as well as with impacting the lives of individuals and
making positive impacts in communities.