1. Rational Management Responses to External Effects.
- Author
-
Narver, John C.
- Subjects
INDUSTRIAL management ,BUSINESS enterprises & the environment ,CORPORATE finance ,SOCIAL responsibility of business ,PROFIT maximization ,EXTERNALITIES ,PROFITABILITY ,CORPORATE profits ,POLLUTION prevention ,PERFORMANCE standards ,ECONOMICS - Abstract
This paper is a discussion of the external or side effects of business and rational responses to these external effects for profit-maximizing firms. Some people would argue that the rational response for the profit-maximizing firm is to do nothing about its external effects until required by law; whereas others, as we in this paper, argue that the rational response for the profit-maximizing firm is to take some action. The first section of the paper deals with the meaning of externalities, of which pollution is a fundamental type, and the phases of a solution to such problems. In the second section, the paper deals with rational responses for the profit-maximizing firm regarding its externalities, in which many aspects of the popular arguments against the rationality and the practicability of independent corrective action by a firm are examined. [ABSTRACT FROM AUTHOR]
- Published
- 1971
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