What Was Friedman's Argument Against Corporate Social Responsibility? What Are

Question

Examlex · Accepted Answer

The Answer is Milton Friedman argued against corporate social responsibility by stating that the primary responsibility of a business is to maximize profits for its shareholders. He believed that businesses should focus solely on generating profits within the boundaries of the law and ethical custom, and that any other social or environmental concerns should be left to individuals or the government to address.

One weakness of Friedman's argument is that it overlooks the potential long-term benefits of corporate social responsibility. By prioritizing short-term profits over social and environmental concerns, businesses may be neglecting the impact of their actions on the community, environment, and even their own long-term sustainability. Additionally, ignoring social responsibility can lead to reputational damage and loss of consumer trust, which can ultimately affect a company's bottom line.

Furthermore, Friedman's argument assumes that businesses can operate independently of society and the environment, when in reality, they are deeply interconnected. Ignoring social and environmental responsibilities can lead to negative externalities that ultimately impact the business and its stakeholders.

Overall, while Friedman's argument emphasizes the importance of profitability, it fails to consider the broader impact and responsibilities of businesses in society.

What Was Friedman's Argument Against Corporate Social Responsibility? What Are

Definitions: