Answer to Question #26781 in Economics of Enterprise for yanzey

Question

According to Milton Friedman, “Business has only one social responsibility – to make profits (as long as it stays within the legal and moral rules of the game established by society). Few trends could so thoroughly undermine the very foundations of our society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible.” Explain why you agree or disagree with such a statement.

Answer 1

According to Milton Friedman, “Business has only one social responsibility – to make profits (as long as it stays within the
legal and moral rules of the game established by society). Few trends could so
thoroughly undermine the very foundations of our society as the acceptance by
corporate officials of a social responsibility other than to make as much money
for their stockholders as possible.”
We agree with this statement, because "making profits" is the only
part of "social responsibility" that is beneficial both for
corporations and their stockholders. If there is a possibility to earn a lot of
money, no foundations of our society can stop this earning profits. And
the only part of the society, which the corporations regard with are their
stockholders, who give money for corporations for their development. Another part
of the society is not counted with, because high profits can tend social
responsibility to fail, and only the law can limit the business and to oblige
it to be social responsible. But not in every case the law can regulate the
business, as some deals may be within the law, but can break the moral norms,
which are the foundations of the society.