The differences between Friedman, Freeman and Entine and Jennings models of social responsibility is their foundation of what are the main considerations when deciding upon these conscientious actions and who were to receive the benefits.
Milton Friedman’s Model believes managers are there to satisfy and be loyal to the company’s (owners) and individuals of society’s profit with stakeholders, vendors and employees coming second. The firm’s reputation is also on the line because without a positive outlook from the community, boycotting of its products might arise. When it comes to the secondary considerations, managers seek to satisfy them with company services, rather than increasing pay and bonuses; this way it will not interfere with the proceeds for society and company. Administrators’ actions might negatively affect employees and consumers by “taxing” them through increases in product cost and reducing increment raises and then using that money to help stockholders instead of benefiting all areas of company structure. These actions are considered acceptable as long as they are not deceitful towards secondary recipients. Friedman believes this is a dangerous practice because, sometimes, these procedures lead to fraud, ruthless maneuvers and unethical measures.
Edward Freeman’s Model sees companies as major organizations within the society and managers must oversee the company’s actions with positive priority to stockholders. Freeman is different than most theorists because he believes corporations are legally a “person” because they are viable parts of the society so they are governed by social, ethical responsibilities. Legal aspects include laws that are beginning to protect more of employee rights, They are also developing guidelines for companies to follow that will increase the benefits and respect towards stakeholders. This model is different in the sense that even though managers’ responsibilities lie within the betterment of the stockholders, it also considers the concept where stakeholders and communities should have a say in the company’s future, and consumers and vendors work with product quality. The main foundation aspect works towards having all groups, of the company, work together while being considered equals with not one above the other.
Entine and Jennings concentrates on and rates a company according to actions towards their respect of the environment. Consumers support companies that take care of the environment, sometimes at the expense of their own profit level. The new “green” actions, products and considerations are their marketing ploys. This model encourages evaluations of the company policy and their goods to make sure they are within the proper guidelines of what is considered environmentally sound and not polluters or attacks on animals. Entine and Jennings encourage companies to have the social responsibility of assisting the environment to stay pure, as well as protecting it.