Milton Friedman's Essay Analysis Of The Social Responsibility To Increase Profit

876 words - 4 pages

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.
First thing let us start with a little overview of what Milton Friedman exposed in his article. It seems that the whole point of his essay revolves around one basic statement which clearly says that the only social responsibility of business is to use its resources and engage in activities designed to increase its profits so long it stays within the rules of the game (Milton Friedman, the social responsibility of business is to increase ...view middle of the document...

He also compared businesses with social responsibilities to governmental institutions. By looking at the structure of large businesses, we can understand the point he was making. So, many of the large businesses are structured as C-corporations which consists of shareholders, the board of directions and corporate officers. Shareholders, the ones who invest their money elect the board of directions which hires corporate officers to manage the daily business operations. So it is the responsibility of the corporate executive to generate the profit while taking into account the laws and regulations.
But, here is my point. If the social responsibility of a business is to increase profit, this does not omit the probability of degrading the surrounding environments (society, economy, ecology...) which by default will be contradicting to the term social responsibility itself which enhances on bringing benefit to society. For me, a business can be at the same time socially engaged and financially maximizing its profit without using someone else's money. For example, a company can be ecological by doing some really simple actions like recycling papers no longer needed, turning off lights and powering off devices not in use, donating equipment and material no longer used in the work offices, and so on. These simple actions are in fact very beneficial for the society. Thus the social responsibility of a business can be maximizing profit while positively improving the surrounding environments.
Now let’s tackle a little bit Freeman Stakeholder Theory which states that a business has a responsibility to maintain the interest of multiple stakeholders while...

Find Another Essay On Milton Friedman's Essay Analysis of The Social Responsibility to Increase Profit

Non-Profit Charitable Organizations: The Oakville-Milton Humane Society

1969 words - 8 pages The Oakville-Milton Humane Society is a non-profit charitable organization dedicated to providing shelter for stray, abandon, and injured animals. Located in the region of Halton, the Oakville-Milton Humane Society has become the most recognized and affective humane society within the region. It was founded in 1936 and has since grown and developed a reliable relationship with members of the community. The shelter is funded through donations

Corporate Social Responsibility: An Analysis of Google

2310 words - 9 pages (Fiegerman, Seth 2013), was expected highly by the public in social responsibility, which means that people pay much more attention to Google events that contribute to public goods or bads. This essay will focus on the theory of CSR, referring to public bads Google bring over human rights such as copyright and privacy, and goods in the field of public health, involving medical care, environment and employment.The Case against GoogleAs we all know

The Impact of Social Economic Perception of Using Social Media to Increase Diabetes Awareness Control and Prevention

1677 words - 7 pages video and audio files, share photos and music. The purpose of this study intends to verify the effectiveness of social media in increasing diabetes prevention, control and awareness or the impact of social economic perception of using social media to increase diabetes awareness, control and prevention. The methodology is a one shot case study. This technique was chosen to identify the impact of how people interact and react in a social media

Responsibility, or Death- Analysis of responsibility in John Irving's novel The World According to Garp

1460 words - 6 pages his list of wants, and he selfishly did not satisfy her desires. Helen's dissatisfaction with Garp's stubbornness and his previous infidelity lead Helen to cheat on Garp.The book's climax occurs shortly after, as Garp again acts on impulse. He called home from the movie theater, where he took his children. When there was no answer, he rushed home to try to catch Helen and Michael Milton. He was angry, worried, and curious about his wife's affairs

Corporate Social Responsibility and the example of The Body Shop - Glasgow University - Essay

1321 words - 6 pages companies while monitoring the consequences on economies, societies and the environment. List of references Aras, G. and Crowther, D. (2010). A handbook of corporate governance and social responsibility. Farnham, Surrey, England: Gower. Boddy, D. (2005). Management. Harlow: Financial Times Prentice Hall. (2016). The Social Responsibility of Business is to Increase its Profits, by Milton Friedman. [online] Available at: http

The boundaries of strategic corporate social responsibility

8567 words - 34 pages probably the first toespouse this perspective (Hartman, 1998). Outlined in Friedman's 1960 tomeCapitalism and Freedom as well as in his seminal 1970 article ``The socialresponsibility of business is to increase its profits'' (Friedman, 1996),Friedman's ``custodian-of-wealth model'' asserted that, ``[In] a free economy. . . there is one and only one social responsibility of business ± to use itsresources and to engage in activities designed to

Social Responsibility Theory (SRT) of the Press

628 words - 3 pages :* Value of media responsibility* Values audience responsibility* Limits government intrusion in media operation* Values diversity and pluralism* Aids the "powerless"* Appeals to the best instincts of media practitioners.* Consistent with US legal tradition- Weaknesses of the SRT* Is overly optimistic about the media's willingness to meet responsibility* Is overly optimistic about individual responsibility* Underestimates power of profit motivation and

What is the Social Responsibility of Business?

1379 words - 6 pages than a third of working Americans receive their salaries from non profit organization that in turn received their funds from others who in turn received their money from businesses. Foundations, universities and all the non profit organizations have billions of shares in publicly held companies. As those top prices increase more funds are available to benefit society. Businesses are also responsible for promoting social justice. Business is perhaps

The Role of Ethics and Social Responsibility

890 words - 4 pages become more significant as the organization grows have more of an impact on the lives of other people in ways management can only imagine. Ethics can be a personal topic, containing an important role in the success of the business and the social responsibility will surely maintain integrity and honesty for the organizations future. In regard to the role of ethics a social responsibility in developing a strategic plan, there will be discussion and

The Social Responsibility of a Software Engineer

3088 words - 12 pages The Social Responsibility of a Software Engineer Abstraction: The social responsibility is one of important responsibilities defined by ACM in its ethic codes for software engineer. Compare to other responsibilities, social responsibility is more remote and ambiguous. When a software engineer obtained the privilege to practice his/her right from the society, he/she is required to take corresponding responsibilities. But the definition of

Describes how social responsibility extends from the level of the individual to the wider community

894 words - 4 pages to litter, he will think twice, because he might get the remark of "being a tosser" from somebody else, and feel uncomfortable. The whole idea of the campaign is to promote social responsibility in people and to extend it from the individual to the wider community.The final example of the idea in this essay might not seem very appropriate at first, but once a person thinks about it, this example will make more sense. In a very popular movie

Similar Essays

Using Corporate Social Responsibility To Make Profit Is Wrong

1279 words - 5 pages This paper will argue that strategic use of corporate social responsibility by corporation merely to make profit is wrong. Corporate Social Responsibility also known as “CSR” is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis (“Commission”). Corporation ought not to use CSR solely to make profit because they violate the

Shareholder Concept Versus Stakeholder Concept: The Impact Of Corporate Social Responsibility On Profit Maximization

9403 words - 38 pages participation in socially responsible act (p. 1100).Response to stakeholder pressure to adopt socially responsible activities ranges from one organization to another based on manager's conceptions of CSR. These conceptions vary from Friedman's view "the social responsibility of firms is to increase its profits" to Carrols view that was previously identified as fulfilling the economic, legal, ethical and discretionary responsibilities (Whitehouse

Responsibility To The Environment An Underlying Profit Motivator

2726 words - 11 pages outdo their competitors in terms of market share and profitability rather than in terms of social responsibility. Yet it is these same corporations who maintain the resources necessary to stop the plague of environmental degradation. However, corporations have responsibilities towards the environment just as every citizen does, but in order for them to act they need to be shown that an increase in environmental stewardship can also increase the

Essay On Shirley Jackson's The Lottery Message Of Social Responsibility

904 words - 4 pages The Message of Social Responsibility in The Lottery       Often, we paint a fairytale view of life for ourselves and our children. Sometimes, an author paints a frightfully realistic picture of life and forces us to reconsider the fairytale. In Shirley Jackson’s story, "The Lottery," a town each year conducts a lottery in which the winner or looser, in this case, is stoned to death by his or her own neighbors. The tradition is supposed to