In this essay, I will be critically deliberating Milton Friedman statement of “The Social Responsibility of Business is to Increase its Profits” (Friedman,1970) by utilising diverse opinions in favour or against Milton Friedman’s assertion, contrasting philosophies together with an extensive example that demonstrates Socially Responsible behaviour.
Milton Friedman begins his widely recognised article with discussing the statement for a social responsibility of business on a “pure and unadulterated socialism”. Asserting that businesses have a duty is shapelessness and needs rigidity. A business is solely an artificial being and cannot have accountabilities that an individual has. In which case, employees within the organisation, solely the individual owners or the business directors, are able to have any social or moral duty. The directors of a business have a lawful obligation to control the business in the greatest benefits of its stockholders. Since the shareholders initial and main interest in investing their financial funds into a company to escalate their personal capital, thenceforth the directors’ only concern is to amplify the profits for their shareholders. The managers lawful and principled responsibility to focus exclusively on assisting the business uttermost importance, which is enlarging profits. Friedman moreover acknowledges that some companies may behave “socially”, donate to charities or offer facilities. The actual untold motive for businesses for such actions is to benefit from enduring profits, for example; enticing desired personnel, lessening financial business outflows. Furthermore, Freidman believes that no person can force others, any collaboration is essentially voluntary, companies will only cooperate if there is a beneficial factor within the purpose, if otherwise they will not gain anything within the participation. Since there is no values or otherwise no “social” duty apart from the communal responsibilities and values of individuals. Believing that the society is a group of individuals from diverse groups they form within their own free will (Friedman,1970).
Consistent with Friedman numerous authors believe, that the only duty of a business is to strive to amplify profits. Adam Smith (Smith, 2005) believes that kindness is not obligatory to improve the communal concern. Instead, self-seeking and profit-centric is needed for us to achieve targets, create goods and amenities and therefore advantage each other’s. In accordance with Freidman, Davis (Davis, 1973) argues that the company purpose is an financial profit, and the directors are the representatives of the stockholders and has therefore to expand their profits. The advantages that appear for themes for participating in socially responsible behaviour are studied in various analyses for example, Patrick Primeaux and John Stieber (Primeaux and Stieber, 1994) concentrate on the economic advantages businesses achieve when t...