The Social Responsibility Of Business

First thing let us start with a little overview of what Milton Friedman exposed in his article. It seems that the whole point of his essay revolves around one basic statement which clearly says that the only social responsibility of business is to use its resources and engage in activities designed to increase its profits so long it stays within the rules of the game (Milton Friedman, the social responsibility of business is to increase profit).

The ethical issues presented in this case are the different views that each individual has on how the idea of corporate social responsibility (CSR). This dispute is between Mr. Milton Friedman, John Mackey, and T.J. Rodgers; all of which has a different outlook on CSR. The definition of CSR refers to the responsibilities that business has to the society in which it operates and to those actions that a business can be held accountable. Most philosophers have come up with three different types of responsibilities that corporations can be held accountable for. The first and most important of the three is a corporation’s duty to not cause harm. If a corporation can

Friedman, M. (1970, September 13). The social responsibility of business is to enhance its profits. The New York Times Magazine.

In Friedman’s article, The Social Responsibility of Business is to Increase Its Profit, he gives two arguments for what, if any, social responsibilities a business has and why they have it. In his arguments, he presents a businessman in charge of running the business on behalf of the owner. The first point he raises in dictating what responsibilities the businessman should fulfill involves defining the businessman’s purpose. He was hired as an agent of the shareholders, the owners of the business, etc. to make the business profitable. Barring some eleemosynary functions, as Friedman states, such as hospitals and schools, the general purpose of a business is to make money, therefore, the responsibilities of an agent of the business would be to increase said profits. To do otherwise would be to fulfill a purpose other than the one he was hired for and betray the owners.

In 1970, Milton Friedman published an essay in which he argued that corporations’ only social responsibility ought to be making a profit for its shareholders as long as it is engaged in open and free competition without deception or fraud (Brusseau, 2012. page. 676). Moreover, Mr. Friedman also argued that only people can have social responsibilities because they control their actions and corporations don’t. However, we see that corporations are engaged in businesses such as making loans, signing contracts, acquiring licenses, creating jobs and services. They act as persons. If corporations had no responsibilities people would not invest in them; for that reason, I believe corporations should have legal and ethical responsibilities.

The prevalent view of business’ social responsibility is Milton Friedman’s agent-owner theory. His thesis mainly says that“ There is one and only one social responsibility of business – to use its resources and engage

Corporate Social Responsibility is essential for businesses to thrive. Corporate social responsibility "...gives a chance to all the employees of an organization to contribute towards the society, environment, country and so on," (Management Study Guide, 2017). Social media, in certain aspects, could be considered a corporate social responsibility. It could allow for employees to spread news about upcoming events that is satisfying for society or the environment, such as expressing information about walks for cancer awareness or events where people are allowed to pick up garbage to improve the environment. It is also great for business leaders in the same way. They are able to broadcast information about themselves into their social account, so that others may understand and view his or her standpoint of contributing to anything in the world. It is exceptionally simple for business leaders or companies themselves to incorporate important corporate social responsibilities. Social media is also important for management because it applies to one of the major components of management: the way that an organization appears to its employees and its consumers. It allows for businesses to broadcast what is important to them and what they are attempting to achieve. A mission

Economist Milton Friedman has a negative view towards the social responsibility of a business. He strongly believes that businesses’ main purpose is to generate profit for shareholders. He thinks that the idea of corporate social responsibility distracts a business from their main

Milton Friedman believes the idea of businesses having some sort of responsibility to society is a baseless notion, and describes discussions encouraging it as lacking meaningful analysis or precision. “What does it mean to say that ‘business’ has responsibilities? Only people can have responsibilities” (Friedman, p.218)1. Corporations are led by executives which are chosen by the owners

According to Milton Friedman social responsibility of business was to increase profits to stay within the rule of the game specifically avoiding deception and fraud. He argued that only individuals have social responsibility to increase profits and corporation is an artificial person (Milton Friedman, p.1) in the sense may have artificial responsibility but business as a whole cannot have responsibility (System not individual). A good corporation in Friedman’s view is not one that attempts activities only because they are ethically good, but because they are economically good.

Continually in today’s working environment businesses and corporations stay finding new ways and methods to align their business goals and values with the profitability of those who they serve or work for (stockholders, other agents). The goal of companies in the business sector is still maximizing profit, but questions now arise at to what extent is that the only goal of the company. Furthermore, we see now more than any time period in history, companies taking on more of a social responsibility than before, which effects their decision making and business plan. The argument therefore remains, is increasing profits the only social responsibility of business?

Do you agree or disagree with the following quotation: “There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say engages in free and open competition, without deception and fraud.” Milton Friedman, a Nobel Prize winning economist. In other words, the social responsibility of business is to make a profit.

Milton Friedman was an American economist, statistician and writer, who had a massive impact on the research agenda of the economics profession. His famous words “the only responsibility of business is to increase its profits” (Friedman, Milton. 1970) led to many controversial debates on whether businesses should have ethics or if profit should be their main goal. Corporate social responsibility has many definitions, as its interpretation is quite loose, so I have chosen one that relates the most to this essay, given by the World Business Council for Sustainable Development, in 2000: “Corporate social

Is the deception of consumers worth making a profit? The Ford Pinto, popular car of the 1970s, made a profit off of a vehicle that endangered the lives of hundreds of people. In his essay “Pinto Madness” Mark Dowie, author and Pulitzer Prize nominee, exposed the unethical decisions made by Ford Motor Company. When it came to their customer’s safety and profit for the company, Ford made a decision that led to consequences their customers had to pay the price for. Should the business be held accountable for these actions? In his essay “The Social Responsibility of Business Is to Increase Its Profit” Milton Friedman, powerful economist, discusses what a business should prioritize in the economic system. Friedman declares what a business is responsible for and the guidelines they must follow. Due to Friedman’s view, he would not have condoned the actions and decisions that the executives at Ford Motor Company took.

According to “Organization for Economic Co-operation and Development”. (2001), the main goal of many businesses in the current society is to make profits. The key measurement of the success of different businesses is based on the amount of profit they make using a given amount of output. However, some of the researchers and economist feel that there is need to measure the success of the society based on the impact they have on the society. All businesses are set up within a given society, and thus there is the need for all businesses to work together with the society to realize its full potential. According to the Chief