Must Milton Friedman Embrace Stakeholder Theory?

Milton Friedman famously stated that the only social responsibility of business is to increase its profits, a position now known as the shareholder model of business. Subsequently, the stakeholder model, associated with Edward Freeman, has been widely seen as a heuristically stronger theory of the responsibilities of the firm to the society in which it is situated. Friedman's position, nevertheless, has retained currency among many business thinkers. In this article, we argue that Friedman's economic writings assume an economy in which businesses operate under the protections of limited liability, which allows corporations to privatize their gains while externalizing their losses. By accepting limited liability, Friedman must also accept a view of business as embedded in social interdependency, which serves as the logical and moral foundation for corporate social responsibility (CSR). To achieve consistency with his economic principles, Friedman must either abandon limited liability or modify his doctrine on CSR and his related shareholder model of business.     

Gambling and Problem Gambling Across the Lifespan

Two national U.S. telephone surveys of gambling were conducted, an adult survey (age 18 and over, N = 2,631) in 1999–2000 and a youth (age 14–21, N = 2,274) survey in 2005–2007. The data from these surveys were combined to examine the prevalence of any gambling, frequent gambling and problem gambling across the lifespan. These types of gambling involvement increased in frequency during the teens, reached a high level in the respondents’ 20s and 30s, and then fell off in as the respondents aged. The notion that gambling involvement generally, and especially problem gambling, is most prevalent during the teens was not supported. A comparison of the age patterns of gambling involvement and alcohol involvement showed that alcohol involvement peaks at a younger age than gambling involvement; and thus, the theory that deviant behaviors peak at an early age applies more to alcohol than to gambling.     

The effect of divorce on intergenerational transfers: New evidence

This paper draws on new data on intergenerational transfers of time and money that were collected in the Panel Study of Income Dynamics. We use these data to examine the effects of divorce on these transfers. We find that the timing of divorce is critical. Fathers and mothers involved in late divorces have similar levels of transfers with their adult children, while divorce during a child’s childhood years increases transfers with mothers and sharply lowers them with fathers. Somewhat surprisingly, we find no evidence that divorced fathers who paid child support are more likely to be involved in intergenerational transfers than those who did not pay child support.     

A reconsideration of the economic consequences of marital dissolution

A close look at the income flows in the years following a divorce or separation reveals marked differences in the distribution of effects. The economic consequences of divorce are especially adverse for women. In most cases, children remain with the mother, who usually has considerably lower potential labor market earnings than her former husband, partly because her responsibilities for the children are likely to reduce her labor supply and may have limited her past human capital investments. Alimony and child support are the principal mechanisms for transfers from the ex-husband to the ex-wife, but payments are rarely frequent or sizeable enough to make up for an appreciable amount of the labor income lost through the departure of the ex-husband. Human capital investments on the part of the mother have a modest effect on her economic situation in the years following the divorce. Most men who divorce or separate are immediately better off because they retain most of their labor incomes, typically do not pay large amounts of alimony and child support to their ex-wives, and no longer have to provide for the level of needs associated with their former families. Much more important than growth in the ex-wife's own labor income is the role of a new husband's labor income upon her remarriage. More than half of the white women remarry within five years following a divorce or separation; the comparable fraction for black women is less than half. An interesting question is whether the currently unmarried would enjoy the same kind of economic benefits, were they to remarry, as women who have remarried. Estimates from a model of the new husband's labor income, adjusted for selection bias inherent in the process of remarriage, indicate that the currently unmarried would probably not gain equal benefits if they were to remarry. The expected labor income of potential husbands of black women averages only about $5000--a modest amount when compared with the alternatives available to these women.     

The Impact of Clique Membership on Children's Social Behavior and Status Nominations

The impact of children's clique membership on their peer nominations for social behaviors and status was examined in a sample of 455 third‐ through fifth‐grade children. Social identity theory (SIT) and children's peer group affiliation and context served as primary conceptual frameworks for this investigation. As suggested by SIT, results indicated that children displayed favorable views toward their own cliquemates, nominating cliquemates more often for positive characteristics (e.g., prosocial, cool) and high status indicators (like‐most, most‐popular) than for negative characteristics (e.g., aggression) and low status indicators (like‐least, least‐popular). At the same time, children's views toward their cliquemates were commensurate with the clique's normative reputations as determined by the broader peer group (i.e., grade). This suggests that children's perceptions toward their cliquemates, albeit favorable, are also regulated by the overall clique context. Meaningful gender and grade effects on children's cliquemate nomination patterns were found. Findings also were discussed regarding the impact of clique size on a peer‐based assessment of social reputations and status.     

Youth and parent perceptions of aftercare supports at discharge from residential care

While much is known about youth struggles after reintegration into the home and community settings following stays in out‐of‐home care, little is known about appropriate supports for aftercare, or parent (see Note ¹ ) and youth perceptions during this critical transition period. This study seeks to begin to address these questions through surveys evaluating youth (n = 48) and parent (n = 48) perceptions of (i) transition planning, family preparedness and aftercare; (ii) youth preparedness for the transition period across major life domains (e.g. education, health care, relationships); and (iii) the importance of specific aftercare supports and services. Results indicate differences between youth and parents on perceptions of need for continued supports, likelihood of participation in aftercare programs; and youth preparedness for success in relationships, family and independent living domains. In contrast, similarities were found on youth and parent ratings regarding the importance of specific services and supports, with both groups indicating supports in education as most important and supports in mental health as least. Study limitations, future research and implications are provided.     

Changes in body weight and fat mass of men and women in the first year of college: A study of the "freshman 15"

Students entering their first year of college are faced with many stresses and changes, including changes in eating and exercise behavior. A common but often undocumented myth among college students is that there is a high risk of gaining 15 pounds of weight during freshman year. The objective of this study was to measure changes in body weight and percentage of body fat among first-year college students. Using a digital scale with bio-electrical impedance, the authors measured height, weight, and percentage of body fat for a sample of students who volunteered to be weighed during a health assessment in the university dining halls. The authors sent e-mails inviting those same students to complete a second measurement in February of the academic year. Sixty-seven of the 217 students who volunteered for the health assessment agreed to undergo a second set of measurements in the spring. The mean change in body weight was 2.86 pounds (1.3 kg, SD = 4.0 kg), and the mean change in percentage of body fat was 0.7% (SD = 4.0%). For those students who gained weight only, the mean increase in body weight (as measured by body mass index, weight divided by height in kg/m2) was 6.82 pounds (3.1 +/- 2.4 kg) and percentage of body fat was 0.9 +/- 3.8%. The authors found that the first year of college is a period in which weight and fat gain may occur. The exact causes behind these changes are unclear and warrant further research to plan or improve intervention and prevention.