The GE And The Hudson River – Essay Example
The paper "The GE And The Hudson River" is an excellent example of a business essay.
Many firms produce a lot of contaminated chemicals that cause a lot of negative externalities to the environment as in the case of GE hence should factor in the cost of corrective mechanisms to help the surroundings.
Stakeholder involved is the citizens and GE as a result of the contamination of the river by GE. The river is used by the locals through domestic needs, practicing agriculture and used by water inhabitants. EPA thus knows that the environment had been affected and needed to react to prevent further damages. EPA hence fits the bill to act on behalf of stakeholders who have got no authority over GE.
Freeman’s stakeholder’s framework provides that business does not only make profits but have a social responsibility to take care of all the parties concerned. Thus, since GE has affected the river by contaminating it by PCB, they should pay for its clean up. Damages have been caused to the aquatic life, endangering the life of human species and destruction of agriculture by burying the PCBs into the soil. This formed the basis why EPA is forcing GE to pay for its damages.
Friedman advocated for the free market which states that; markets should be left to solve themselves into equilibrium and should not be interfered with by the government. This had an impact in key business decision making. For instance, the majority of the citizens are of the opinion that nature should be left to take its course in correcting the damages that are caused by GE to the Hudson River. This represents capitalist’s behavior that is only concerned by their profits and not the welfare of the community.