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Externalities In Capitalist Society

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Introduction Along the course we have had the opportunity to evaluate many business problems under the perspective of the managerial practice. A problem in particular attracted my attention so much that I decided to use it as a main topic for this work. This problem is indeed that of the externalities in the Capitalist society. My aim is to discuss this issue using the material discussed in class and emphasizing on the consequences of the daily consumer choice. I will highlight how often we lack awareness regarding the consequences/externalities of our daily decisions. I will use examples and metaphors to illustrate how often the side effects of our habits are masked and deceiving. Awareness, in the mind of the average consumer could therefore …show more content…

Especially proposition (5) and (7) enabled me to better define the dilemma they were facing (Mintzberg, 2011, p. 223-224): Is it correct to judge the Managerial practice only in relation to the contribution given to the team/unit/firm or it must also be assessed for the broader impact, on the social community? In their situation there was no possibility to preserve the community's interest without harming the firm. Moreover, the social interest could have been preserved only for a limited amount of time, more specifically, only as long as no one else realized the existence of that same problem. After all, the bubble would have popped anyways, any time soon. In my final judgement then, I refused to "point a finger" (to use a Mintzberg expression) and blame them for starting a financial crisis. From my point of view, I must say I agree with Roy when he says that "People want to live like this with their cars and big houses they can't even pay for, then you're necessary. (….)They want what we have to give them but they also want, as you know, play innocent and pretend they have no idea where it came from. " (Margin Call, …show more content…

These product do not qualify as harmful because of their purpose, but because of the processes they have to go through. In other words while it can be said that is in the very purpose of a gun to harm a man, we cannot draw the same consideration for packaged foods and sugary beverages. In fact, it is likely that the implementation of the CSV strategies will improve the production methods of these goods in order to reduce the harm for human health. Some of the features presented by the CSV goals resembles the aims of the social entrepreneurial activities. Indeed together with the economical benefit of the Shared Value strategy, Porter often emphasize on the positive social outcome that this practice would foster (Porter 2013, p.65). These aim appear In line with the typical social entrepreneurial goals willing to "enact goodness and social good that others value" (Chell et Al, 2014). Yet the author fails to take in consideration some ethical considerations that should be relevant for the social entrepreneurial ventures. I believe that Porter grounds part of his paper on an unsupported assumption. Porter assumes that the creation of economic value in the developing countries is the preferred option

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