Milton Friedman 's The Social Responsibility Of Business

2315 WordsDec 7, 201610 Pages
Prior to this class, I would’ve viewed the purpose of a business to be exactly as Milton Friedman describes in his article “The Social Responsibility of Business is to Increase its Profits.” In this article, he claims that corporate executives have responsibility to their employers, those employers being shareholders whose monetary contribution gives them capital to work with so they can expand the business, and the only way they will fulfill that duty is to make them as much money as possible. Businesses do not have a duty to provide any sort of contribution, monetary or time, to foundations that assist the less fortunate. Either of these contributions effects the profits the company can generate for their shareholders, and since it is not the executives’ money to work with, they should not be using it for things that the shareholders did not intend their money to be used for. As individual businessmen, acting as a sole entity not as an arm of the corporation, it is perfectly fine to engage with the community and make contributions to the betterment of the community because you’re using your own time and money, not the company’s. In certain cases, this argument makes a lot of sense. Businesses are not always the best equipped to make decisions for the improvement of the less fortunate, as seen by the example of Tom’s Shoes. Sure they donate a pair of shoes to communities where people don’t have them, but shoes are not the most necessary item for the citizens in that
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