Milton Friedman 's Theory Of Corporate Social Responsibility Essay

Milton Friedman 's Theory Of Corporate Social Responsibility Essay

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Today’s 21st century has brought forth many changes, both positive and negative, as well as, an extremely diverse society whose different needs and wants must be met. Therefore, in an attempt to sustain a balance and comprehend today’s challenges, society as well as, businesses tend to adopt and incorporate certain methods, systems, and theories. As a matter of fact, in the past, the Milton Friedman’s theory of corporate social responsibility was adopted and very influential (Friedman, 1962). The Milton Friedman’s theory stated that the obligation of a business was to maximize its profits, and that business executives had a responsibility to their shareholders rather than to the greater good of society (Friedman, 1962). However, since things and people have evolved throughout the years, the perception of Milton Friedman’s theory has been impacted. Therefore, in this paper, one will further discuss the Milton Friedman Goal of the Firm, its relevancy as it applies to apprehending the purpose of a business in society, and whether or not the government or society portrays a role in expanding the Friedman discussion.

The Goal of the Firm
In today’s society, how a business operates and how it conducts its organization and affairs is extremely important. Especially, since today’s society is extremely diverse and tends to have its various wants and needs. Therefore, in an attempt to sustain a balance and comprehend today’s challenges, society as well as, businesses tend to adopt and incorporate certain methods, systems, and theories. Particularly, since they want to succeed and prosper, not to mention, maintain a competitive advantage. For this reason, and the notion of wanting to generate more wealth, previous generations, found and t...

... middle of paper ...

...rnment of the 21st century has advanced and become more involved in the market than previous generations. Not to mention, that it has acquired more power and control over the market.
In conclusion, when considering the Milton Friedman theory, firm’s goal, and belief of government involvement, he’s notions and theories were established with best intension. Nonetheless, his notions no longer coincide with today’s developed society. Today’s society needs businesses that operate with the greater good of society in mind, and a government that is involved in certain aspects, however, refrains from appropriating, yet supports a free society. After all, a society needs order, laws, and protection, to avoid abuse, fraud, deception, and chaos. Furthermore, society requires freedom, to avoid oppression and being controlled. In all, a balanced is vital in today’s society.

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