The Friedman Doctrine And Social Responsibility

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The Friedman Doctrine
Taking a share holder approach to social responsibility, Milton Friedman views shareholders as the economic engine of the organization and the only group a firm must be socially responsible to. For the risk taken by investing in the firm, Friedman says the goal of the firm is to maximize profits and return portions of those profits to shareholders. Because a firms’ only concern is to increase profits for themselves and shareholder, they have not social responsibility to the public or society. The shareholder themselves in their private capacity, have social responsibility. Friedman states that the only social responsibility a business has is to use its resources to increase profits. The company is to engage in open and free competition without deception or fraud (Dunn & Burton, n.d.).

Cultural Relativism
The principle that an individual person’s beliefs and activities should be understood by others regarding their own individual culture is cultural relativism. Researched by Franz Boas and later popularized by his students in the 20th century. The concept that civilization is not absolute but, relative. And that our ideas and concepts are true only so far as our civilization goes. Cultural relativism is the idea that all beliefs, norms and values are dependent on their cultural context and should be treated as such (, 2015).

The Righteous Moralist
When doing business in foreign countries, the righteous moralist claim that a
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