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Running head: CORPORATE SOCIAL RESPONSIBILITY 1Corporate Social ResponsibilityStudent’s Name:Institutional Affiliation:
CORPORATE SOCIAL RESPONSIBILITY 2Corporate Social ResponsibilityMilton Friedman and R. Edward Freeman hold contrary beliefs about what the social responsibilities of a business should be. For Friedman, the market presents free choices that individuals make. The profits reveal these options; thus, maximum profits express maximum benefit in the society. According to Friedman, if a business engages in “doing good,” it will contravene its purpose and interfere with the free market structure. However, Freeman holds the opinion that corporate responsibility involves desisting from the socially harmful behavior and contributing directly and actively to the good of the society. I lean more towards Freeman’s account of Stakeholder Theory, which points out that a firm should be managed at the expense and for the benefit of any person who can affect or is affected by the activities of the organization.Milton Friedman’s ArgumentMilton Friedman argues that the primary purpose of any business is profit generation to its shareholders. According to Friedman, the social responsibility of firms is to use their capital and resources in activities that are intended to increase their proceeds so long as they maintain the rules of the game; for instance, engaging in free and open rivalry without fraud or deception.