The Social Responsibility Of Business

932 Words4 Pages
A corporation does do business within a vacuum; rather exist as part of larger collective framework of society, stakeholders and a global business community. I believe that corporations which are profitable, and promote moral and ethical standards are the benchmark of success; additionally, corporations bear a great social responsibility to the society it exists within, an simply working within “the basic rules of society, both those embodied in law and those embodied in ethical custom” is not enough (Friedman, 1991). While Robert Solomon and Milton Friedman both champion the use of ethics and morality in business, they disagree on industry’s responsibility to society, and corporations role to include communal obligation while crafting policies and guiding principles for their business decisions.
In his landmark paper “The Social Responsibility of Business is to increase its profits” Friedman decrees a distinct separation between personal views and professional decision making, is required on behalf of the executive to best serve the corporation he is charged with leading. An executive’s primarily responsibility is to the corporation, and its profitability, and that directive alone should be the guiding principle behind all business decisions (Friedman, 1991). Friedman argues that the executive who makes corporate decisions based on personal judgments are not only blurring the lines between their private and public lives, but diminish the separation between government
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