Do You Agree with Milton Friedman’s (1970) Claim That: “the Only Responsibility of Business Is to Increase Its Profits”?

2888 WordsDec 6, 201512 Pages
Do you agree with Milton Friedman’s (1970) claim that: “the only responsibility of business is to increase its profits”? Today we live in a world were companies are major actors and influence society on many levels. This is why ethics were brought into the business world. Ethical enterprises follow certain values and moral beliefs and were created with the supposed intention of using that influence in a positive way and protect what surrounds them, whether it is the people who work for the company, the rest of society, the environment etc. Ethics helps companies distinguish what’s wrong or right in a certain situation and act upon it. It bases itself on the idea that a corporation is somewhat responsible for how it affects others, hence…show more content…
Many cosmetic brands like Lush or The Body Shop chose to ban animal testing and adopt a ‘cruelty free’ policy that doesn’t harm anyone during testing. The Body Shop even took it a step further by having the same testing that is usually practiced on animals done to a volunteering actress in the window of one of their shop to try and sensitize more people to the situation. (The Body Shop, 1992) The company used the influence it had to promote a cause that was important to them and raised awareness on the subject. This is why the installment and promotion of positive values is important. Managing by values was created to help incorporate those in the way the business is run, and benefits a company in many ways. Not only does it promote a healthy view of the brand but it also helps tie up different departments together and builds up the employee’s attachment and loyalty to the company. And although managing by values isn’t the same as corporate ethics, they are both linked, and the improvement of one helps the establishment of the other. This form of management proves that companies are not the evil they can sometimes be portrayed as. They can be humane, do the right things and project a positive image. (Dolan et. Al., 2006) But this is not always the case. Many debate on the true intentions of socially responsible businesses and question the necessity of involving ethics into the business world. One

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