Friedman goes on to state that true corporate social responsibility, contrary to the wishes of stockholders, is a tax. This may be on stockholders (in the form of lower returns), on customers (higher prices), or on employees Friedman social responsibility essay wages). Most of the discussion of social responsibility is directed at corporations, so in what follows I shall mostly neglect the individual proprietors and speak of corporate executives.
In a freeenterprise, privateproperty system, a corporate executive is an employee of the owners of the business. Nov 24, 2006 The occasion of Friedman's recent passing offers an opportunity to revisit that argument. It remains the basis for many companies' contention today that" corporate social responsibility, " " sustainable business, " and other such monikers are a distraction from their core obligation: to act in their shareholders' best interests.
Milton Friedman on Corporate Social Responsibility. Milton Friedman argued vehemently against spending shareholders money for anything that does not directly contribute to increasing shareholder wealth. He took the Kantian view that directors must look after the interests of shareholders, which seek wealth maximisation.
Milton Friedman's Essay Analysis of The Social Responsibility to Increase Profit 727 Words 3 Pages. taking a look at the famous Milton Friedman's essay" The Social Responsibility of Business is to Increase Profit".
The following paper is an attempt to critically evaluate the article in consideration of Freeman Stakeholder Theory. In this essay we are taking a look at the famous Milton Friedman's essay" The Social Responsibility of Business is to Increase Profit".
The following paper is an attempt to critically evaluate the article in consideration of Freeman Stakeholder Theory. Milton Friedman, The Social Responsibility of Business is to Increase Profits The Business Case for Corporate Social Responsibility Oxford Handbooks Online The Business Case for Corporate Social Responsibility Elizabeth C.
Kurucz Essay on Social Responsibility of Business Is to Increase Profit Conversely, Friedman states that if these are social responsibilities, they are of individuals not of a business. (Friedman, The Social Responsibility of Business is to Increase Its Profits, p. 52) He contends that, in any situation, the executive would be spending someone elses money for the social responsibility.
Milton Friedmans wellknown response is: a corporations responsibility is to make as much money for the stockholders as possible. At first blush this sounds uncivil, severe, potentially even cruel.