Ethics/ social responsibility, and stakeholders Some people argue that the only relevant stakeholder to consider in a profit-seeking organization is the owner. These people argue that in competitive markets an organization that pursues so¬ cial or other goals that increase costs is inappropriately diverting economic re¬ sources. They also say that firms pursuing social objectives will be disciplined by the market—that they will suffer losses because their prices can be no higher than the competition while their costs will be higher. Despite this we see many organizations that pursue both social and economic goals. How can such a course of action be rationalized with the economic view, or does this phenome¬ non call the economic view into question? Explain.

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