Friedmans View On Corporate Social Responsibility

Friedman’s View on Corporate Social Responsibility The answer to the questions of Why does a business exist? and What purposes does/should it serve within society? are not agreed upon by all. The concept that companies having social obligations beyond their economic benefit is controversial (Chandler Werther Jr., 2014). This paper will briefly examine the viewpoint of the well-known economist, Milton Friedman, whose assertions have been very influential in the debate surrounding corporate social responsibility (CSR). Arguments, both in support of, and against Friedman’s assertions, will be presented along with examples of two organizations having contrasting attitudes regarding CSR. Lastly, the paper will examine three organizations whose literal adherence to Friedman’s view has led to the rationalization of unethical behaviors. Friedman’s Assertion Milton Friedman, a well-known and often-cited Nobel Prize winning economist, asserted that the sole â€Å"social responsibility of business is to increase profits (as cited in Chandler Werther Jr., 2014, p 5). Friedman believed that financial success and profit maximization are the only justification needed for the existence of a business; the resultant positive economic contribution is the value provided to society and, thus, its only social responsibility. He believed that the notion that companies are socially responsible, or obligated, to fulfill any other role is a deterrent to the true purpose of business in a freeShow MoreRelatedIn Response to Friedman’s View of Corporate Social Responsibility946 Words   |  4 Pagesdescribed as left of center in political spheres. 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