The Social Responsibility Of Business Is To Increase Its Profits Northampton University, Business Csr Essay

2372 words - 10 pages

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.
Friedman’s Views
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...


CSR Corporate Social Responsibility - University - Assigment

1873 words - 8 pages ratios (, 2018) indicate the company is in good conditions to fulfil its short term commitments with its creditors. 8 Conclusion The present assignment has disgust Corporate Social Responsibility and it concepts. We have also used Vale Do Rio Doce, a mining company to illustrate the importance of CSR and sustainability. Vale do Rio Doce is a multi-national company, with business in five continents. It gives great

international business negotiation - university of northampton - negotiation

3854 words - 16 pages among both the parties is the major factor. It is normally a win-win type of negotiation. For example: If a trade union and employees engage in the negotiation in which the agreement is made between them where the employees get a pay rise. This negotiation favours both the employees and the trade union because pay rise is linked to the increase in productivity (Thorn,2009). According to (Fisher and Ury, 2012), the method negotiation is based on a

AXE Rebranding: increase AXE’s growth in the male grooming category “across its full product range” - John Molson School of Business - Essay

2106 words - 9 pages AXE Case MARK 453 A - Fall 2017 Presented to Caroline Roux October 10th, 2017 Rachel Abessira 27375158 Nader Aboukheir 40015109 David Bono-Raftopoulos 27751605 Maria Holyanova 27085435 Graeme Lindsay 40009381 1. Problem Statement: Jacobs and the team: · Must increase AXE’s growth in the male grooming category “across its full product range” · Must maintain the Brand’s core value proposition which is focused on attraction, however “the definition

Does The Intense Media Coverage Of Violence Contribute To Its Increase In Our Society?

1315 words - 6 pages his bill went twirling around his head. The next day, I pushed my brother off of a cliff and shot my dog to see if its head would twirl around.Obviously, that last sentence is not true. Some people believe that violence on the tube is one of the main factors that leads to real-life violence, but in my opinion, television is just a minor factor that leads to real-life violence and that it is the parents responsibility to teach kids the

Discuss whether there is a limit to the size of human social networks.” - University - Essay

1193 words - 5 pages PY1605 Psychological Perspectives on Contemporary Issues. CW1 - “Discuss whether there is a limit to the size of human social networks. Please include what might cause a limit and what techniques we use to overcome it.” Word Count – 932 Student ID: 1721799 “Discuss whether there is a limit to the size of human social networks. Please include what might cause a limit and what techniques we use to overcome it.” As evolution took place, the human

career assessment for anyone who is in need - the university of Memphis scms - business

1200 words - 5 pages Free assessments above pointed out my most important skills that I think are extremely important to help a company grow. Being creative in the business world is so crucial in my eyes. Someone has to keep up with the latest trends and be a couple steps ahead of its competitors. The only way to accomplish this is to be unique and authentic. Leadership skills are another set up skill needed for this innovative working environment. Once being a part of a team

Discuss and analyse the importance of responsible business management using the academic literature and company examples to illustrate and support your arguments. - University of Kent - Essay

2410 words - 10 pages stakeholders interested in profits. However, it is the most important aspect to the community and the workers impacted by the decisions taken. In recent years, it has become clear that more managers have lost their positions due to social and ethical issues. Therefore, now more than ever business leaders must behave ethically for the sake of the company and its employees. Within this essay these perspectives will be further analyzed. Their

Your essay is designed to increase your understanding of nonverbal communication in relationships. - COM3404 - ESSAY

671 words - 3 pages Tammy Castillo For this essay I will be evaluating the nonverbal communication between me and my best friend when we interact with each other. I will be focusing on the oculesics, touch and time of our nonverbal communication. My best friend is known as the outgoing one and I am the shy one. Anytime she meets someone she always gives the person direct eye contact in order to establish a relationship with them and interact with them. Meanwhile, I

Business To Business Exchange

441 words - 2 pages Business to Business (b2b) Exchanges1. The reason that a company would want to participate in a b2b exchange is that the b2b exchange is an online marketplace that quickly connects buyers and sellers. On a b2b exchange supply chain, transactions for entire industries can take place under one virtual roof. Business also takes place faster and more efficiently via the common platform of the internet.2. The have been several reasons that Business

Process of doing domestic business globally - University of Phoenix - Essay on doing business globally

471 words - 2 pages Doing Domestic Business Globally In the process of transforming a domestic business into global business involves complexity due to decentralization process. The process involves management of human resource which has varied backgrounds, wide variety of customers and suppliers. In addition, it also involves adapting to different local demands and cultures. When a firm commences its international operations, it develops new visions and missions

Territory Design for business to business - SMU Business to Business - Essay

1204 words - 5 pages sales coaches to assist their sales personnel to develop required skills. The main function of a sales coach is to encourage salespeople to assume responsibility for his or her own development and to support them within the process. Coaching does not need to involve long sessions and can still be conducted effectively in only fifteen to twenty minutes. The amount of coaching time required drops to only one to two minutes once staff get used to

Business & growth with Social Media - Technology - Essay

651 words - 3 pages my opinion. According to a recent study the article points out that businesses saw a 76 % return on their social media investments. Based on this information I think it is impossible for a business to grow without the use of social media. The exposure and the amount of people you are able to reach easily with minimal cost speaks for itself in my book. What I found beneficial about this article, is that it walks you through the process of

business is the issue spring MYP - Lamar high school - Business

1710 words - 7 pages Business is the Issue? Business Information Management Spring, 2018 Client: A publishing company wants to increase the market of its youth readers. They are looking to create a publication that affects the many issues of today’s youth. They have asked the students at Lamar to create a magazine about teenage social issues around the globe. Task: Based on the content that you were taught, you must choose a platform to create a magazine that will

SIA Structure and its nature of business - KFD 1A - Assignment

2231 words - 9 pages Free , cost cutting measures and also the separation between international and domestic operations to provide more accountability and autonomy. As a result, turns Qantas’ losses into profits, as currently the model of flying on budget where customers pay for only what he or she needs is gaining popularity. SIA use Qantas’ transformation program as reference and transform its own operations on its budget subsidiaries where it is facing intense competition

Corporate Social Responsibility - York University/SOSC 1340 - Research Paper

2766 words - 12 pages corporation: The pathological pursuit of profit and power. Toronto: Viking Canada.  Copp, D. (2006). The Oxford handbook of ethical theory. New York; Oxford: Oxford University Press. Friedman, M. (1970, September 13). The social responsibility of business is to increase its profits. New York Times, p. SM17. Garrett, G. (1922). The driver. New York: E.P. Dutton & company. Retrieved from