Milton Friedman s The Social Responsibility Of Business

Prior to this class, I would’ve viewed the purpose of a business to be exactly as Milton Friedman describes in his article â€Å"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 corporati on, 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 thatShow MoreRelatedCorporate Social Responsibility : Milton Friedman1083 Words   |  5 PagesAbstract Milton Friedman, a well-known, Nobel Prize recipient, and economist, who preached against corporate social responsibility as a goal to American businessman. His concepts, and arguments, has been their foundation for fiscal success thereby generating end-profit for shareholders. However, over the past 40-years, financiers have realized not only do they owe earnest to their shareholders but also their customers. The government and society have both found roles to play in the future of bigRead MoreMilton Friedmans The Free Market Theory1312 Words   |  6 PagesMilton Friedman bases his opinion on businesses and profit maximization on the foundation of free enterprise. â€Å"The free market theory believes that business managers have only one primary responsibility, which is to maximize profit; also, the theory tells that government should not involve in economic matters, except to prevent fraud and coercion† (p. 7) Mr. Friedman argues that a corporation, unlike a person, cannot have responsibility. I disagree with this notion. I don’t think that anyone wouldRead MoreCorporate Social Responsibility Definition1011 Words   |  5 PagesThis research study is about what the Corporate Social Responsibility (CSR) is, how people define and how I understand this term? According to my research and observations, CSR does not have only one and constant definition. I have read a lot of definitions of CSR and in fact, they are similar but not the same. Briefly, definition and understanding of CSR depends on person to person. Thus, I am going to talk about definitions of the CSR and I will define my own perspective about the CSR. Read MoreDo you agree with Milton Friedman’s (1970) claim that :  « the only responsibility of business is to increase its profits  » ?2913 Words   |  12 Pagesï » ¿Do you agree with Milton Friedman’s (1970) claim that  :  «Ã‚  the only responsibility of business is to increase its profits  Ã‚ »Ã‚  ? 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 â€Å"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. CorporateRead MoreEssay on Social Responsibility1055 Words   |  5 Pagesprofit; however, social responsibility looks outside of profits and determines the effects on all stakeholders including customers, environment, and society. In addition, the strategic decision should also be based on the code of ethics set forth by the organization. Furthermore, when determining the development of a strategic plan, the organization may either use the views of Milton Friedman or Archie Carroll (Wheelen, 2010). Two Views of Social Responsibility Milton Friedman and Archie CarrollRead MoreChaser Essay1713 Words   |  7 PagesPhilosophy 6: Ethical Issues in Business Midterm Essay Chase Novak Dr. Parker Need or Greed? New Protocol: How Drug’s Rebirth as Treatment for Cancer Fueled Price Rises Immanuel Kant-Kantian Deontology John Locke- The Justification of Private Property Adam Smith-Benefits of the Profit Motive Milton Friedman- The Social Responsibility of Business Is to Increase Its Profits Thesis: An examination of the case study New Protocol: How Drug’s Rebirth as Treatment for Cancer Fueled Price RisesRead MoreMilton Friedman s Philosophy, Consumption Analysis, And The Theory Of Stabilization Policy Essay1601 Words   |  7 PagesMilton Friedman was a respected economist that posited numerous new ideologies within the economic realm during the 20th century. In 1976, Friedman was awarded the Nobel Memorial Prize in Economic Sciences for his examination of monetary history and philosophy, consumption analysis, and the theory of stabilization policy. Another theme Friedman is generally known for is his position with respect to the responsibilities of corporations. He had expressed that few trends could so thoroughly undermineRead MoreThe Corporate Social Responsibilities ( Csr ) And Maintainability1483 Words   |  6 PagesPresentation Deliberating with the rules given in the inquiries, the entire task worries about the Corporate Social Responsibilities (CSR) and maintainability. As it is specified in the inquiries we ll be discussing the CSR and maintainability. The goals of each business while building up are to make the financial conditions more grounded and to last nature for future era. Performing amid its normal exercises, it is having negative effect in nature. In the event that these sorts of exercises areRead MoreMilton Friedman And The Social Responsibility Of Business Essay1237 Words   |  5 Pagesmajor arguments of Friedman and Freeman et al. on CSR A. â€Å"The Social Responsibility of Business is to Increase its Profits†, written by Milton Freeman (1970). Milton Friedman took a â€Å"Shareholder Approach† to social responsibility. This approach asserts that shareholders advance capital to a company’s managers, who are supposed to spend corporate funds only in ways that have been authorized by the shareholders. Friedman wrote: There is one and only one social responsibility of business to use its resourcesRead MoreSocial Responsibility Of Business : Milton Friedman, The Famous Nobel Prize Winning Economist805 Words   |  4 PagesIt was Milton Friedman, the famous nobel prize winning economist, who once said there is 0:12 one and only one social responsibility of business—to use its resources and engage 0:18 in activities designed to increase its profits so long as it stays within the rules of the 0:23 game. Friedman s comments characterize one of two perspectives related to business social 0:28 responsibility. On one hand we know that the primary objective of a business is the attainment 0:34 of profits. But does that mean