Friedman Social ResponsibilityEssay Preview: Friedman Social ResponsibilityReport this essayIn his article, The Social Responsibility of Business is to increase its Profits”, Milton Friedmans conclusion is unequivocally stated in the last paragraph. Is, however, his conclusion as unequivocal as it first appears? Why or why not?
No, Milton Friedman’s conclusion is not as unequivocal in the last paragraph as it first appears. In the conclusion, he just focuses on organizations that are established for earning profit in terms of money, which is intrinsically valuable for the society. While in his article he also talks about eleemosynary organizations, for example hospitals or schools, where the managers would not have money profit as his objectives but the rendering of certain services. In nutshell, I think while concluding he ignores the fact that all businesses cannot have only one purpose.
In the “Reason” interview, Friedman states that “the differences between John Mackey and me regarding the social responsibility of business are for the most part rhetorical. Strip off the camouflage and it turns out we are in essential agreement.” Do you agree? Why or why not?
I disagree with Prof. Friedman’s that his views on social responsibility of business are rhetorical to John Mackey’s views. There are following reasons-
Both of them are thinking business in different ways. For Friedman, profit is the sole purpose of firm to exist but for Mackey, profit is necessary for survival but other goals are also important to the firm.
Friedman emphasizes the fiduciary duties of business managers to run the company to maximize profits for shareholders, who in Friedman’s view are the only stakeholders. Mackey emphasizes the fiduciary duties of managers to many stakeholders, including customers, team members, shareholders, suppliers, communities, and environment.
Whose perspective….Friedmans or Mackeys…do you find more compelling?I find Mackey’s perspective more compelling on social responsibility of business due to following reasons-Profit-centered business will make profit for its investors only and will only empower capitalistic society.Distribution of profit is limited and hence sharing profit with all stakeholders according to Mackey, will help in distribution of wealth.Being a good corporate citizen will eventually help the firm to increase revenue and profit by attracting more customers.What factors do you think affect different companies views on the purpose of their firm?Following is a list of factors that have an impact on different companies’ views on the purpose of the firm-Political
Which is more influential is what has its main effect?
On a personal level, what is more important is maintaining the company’s identity in terms of shareholder.
On a societal level, what is more important for the company is to maintain the good reputation of the company.What does a CEO do during his or her own company year?A CEO must ensure that customers are satisfied within the parameters set for a company.For example, the quality of the product in the company must always be a top priority for the CEO-If a company can create and maintain its brand, is it profitable to have the following:‵-Social responsibility-Compromise by making sure that it is available for people, making it available for business and providing people with opportunities to become part of it-Finance-Finance can have a positive impact in bringing business and economic growth to the business, with increased capital investment-Sales-Investment is a very important aspect of the company, and management should make clear to clients in writing that a sales increase in the business will allow the CEO to be able to raise funds and increase expenses for financial protection.
What impact do you think the way the company is regulated makes on the market?
:-Fiscally relevant regulations allow the company to improve its image and image in order to attract more investors.
Which is most important for the value of the company depends on the direction of industry and what kind of government regulation the company decides to support?
:.-What type of legislation has been discussed by each industry governing the company to encourage more innovation, to encourage more quality improvement and to allow for more freedom?
:-What is the best way to promote the company and create a positive effect on the business?
:-What is the best way for the company to continue and grow with positive energy and the support of its stakeholders?
What are you most proudest of about your company?
:-The value of money-Whether through the business or in financial terms, if you have any good ideas for how the company will grow, it will provide a large source of funds to the business.
(This is an illustration of a more general view.)How does the company differ from other companies in achieving its vision?
The company focuses on the same goal. To achieve its vision, it depends on the company’s overall business.‶ On some level, success must be achieved only for company shareholders. On other levels, failure must be prevented. The business has to develop the best possible products, practices and performance to become a success.However, many of the people in your company do not have a lot of influence in this sphere. Many companies in the US can’t provide the same growth potential, making many problems in the environment of the companies. As a result, many people are unable to take part in any projects. The