1. (1o points) Briefly explain Milton Friedman's arguments in favor of the shareholder theory of corporate social responsibility, and against stakeholder theory. 2. (25 points) Read the following ethical dilemma, and then do the following: a. Identify all of the ethical issues presented by the dilemma; b. Identify everyone that may be affected; c. Identity the consequences to everyone you identify in (b), above; d. Evaluate the dilemma using multiple ethical principles; and e. Recommend a specific course of action for Roger that is based upon your responses to items (a) through (d). Here is the dilemma: Roger worked for a small auditing firm and conducted an annual audit of a machinery manufacturer. During the audit he discovered that the firm had received a large loan from the local savings and loan association. It is illegal for a savings and loan association to make a loan to a manufacturing firm; law to mortgages based upon residential real estate restricts them. Roger took his working papers and a Xerox copy of the ledger showing the loan to his boss, the partner in charge of the auditing office. His boss listened to Roger, and then told Roger: "I will take care of this privately. We simply cannot afford to lose a client of this status. You put the papers you have through the shredder