Answer to Question #26747 in Economics of Enterprise for Herieth Francis Mark

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

I agree with this statement as income maximization - is really the only social responsibility of business. In
fact, for profit necessary produce products / provide services that will be
most needed (useful) to customers. Thus in order to reduce the cost and time of
production / services to achieve a high level of productivity, which is
possible only in providing employees with proper working conditions,
appropriate level wages, providing them with social benefits (insurance,
vacation, sick leave and is etc.).