friedman summary

friedman summary - Brooke Galietto September 3 2008...

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Brooke Galietto September 3, 2008 Business 101 The Social Responsibility of Business Is to Increase Its Profits By: Milton Friedman Social Responsibility is an innate obligation, but participating in good works is a personal choice. Therefore, it is impossible for a business to be charged with social responsibilities. A corporate executive’s job is to satisfy his employer by making the most money possible. In order to satisfy this goal, the corporate executive cannot spend money on a social objective. All expenses should be executed in the most cost effective way. For example, using a more expensive but environmentally friendly machine would not be in a corporate executive’s best interest. Spending more money would only minimize his total profit and disappoint his boss. A major decision facing today’s businessmen is whether decisions should be based on what is best for the individual, the company, the economy, or the world at large. The government and all overseers of the market hope that corporations will act ethically
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This document was uploaded on 10/27/2011 for the course COM 134 at Miami University.

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