Milton Freidman On The Concept Of Social Responsibility Essay

Milton Friedman, who was a prominent economist, wrote a thought-provoking article in the New York Times Magazine in 1970 on the subject: social responsibility and ethics in strategic management. The one end of the economic policy spectrum, Adam Smith, influences Freidman. Smith embraces the knowledge that consumer and producer control the stability of the economy. This is based on free market equilibrium. Freidman most renowned quote is “There is one and only one social responsibility of business-to increase its profits.” The above quote clearly state his opinion on the concept of social responsibility. Freidman argues against the concept of social responsibility and his reasoning’s of corporations having one responsibility that is to make money, which has made him quite legendary.

For example, that he …social objective of reducing poverty”. Thus, according to Freidman, profit maximization is the sole responsibility of a firm and spending shareholder money for the social interest is not ideal. This statement is less compelling to me as I believe social responsibility means: the right quality of life is given and human rights is not sacrificed or compromised in order to attain your opportunities or demands. Freidman illustrates that he is against social responsibility by stating: “there is one and only one social responsibility of business–to use it resources… without deception or fraud." Due to these reasons, I do not agree with Friedman arguments, because he believes that social interest can harm the organization’s productivity; whereas, I disagree and highly believe there are many benefits in taking lead in social interest and