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Subj: Re: Milton Friedman: Economist
Posted: Tue Oct 14, 2008 at 07:44:38 pm EDT (Viewed 677 times)
Reply Subj: Milton Friedman: Economist
Posted: Tue Oct 14, 2008 at 07:28:00 pm EDT (Viewed 733 times)

> Go to and you'll find the following paragraph:
> ---------------------------
> In 1970 Milton Friedman wrote that "there is one and only one social responsibility of business--to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud." That's the orthodox view among free market economists: that the only social responsibility a law-abiding business has is to maximize profits for the shareholders.
> ---------------------------
> Do you agree or disagree with Milton Friedman and the orthodoxy view among free market economists?
> Other possible stakeholders of any business: its workers, its customers, its suppliers, its community, and its nation.

I agree. He only says social responsibility. If he had said just "responsibility" I might disagree somewhat. To me, social responsibility means an understanding with society that the company will do their responsibility. And that responsibility is to basically make money (or technically keep shareholders happy).

For instance, I'm sure most people agree that companies have a legal responsibility to follow the law.

I would see nothing wrong with saying that the company should have a desire to keep their stakeholders happy. But responsibility indicates a "must", therefore it's not a choice, and limits there freedom to chose.

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