Social Responsibility And Impacts

Running head: SOCIAL RESPONSIBILITY AND IMPACT
SOCIAL RESPONSIBILITY AND IMPACT
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SOCIAL RESPONSIBILITY AND IMPACT
Table of Contents
Introduction......................................................................................................................................3
Discussion and arguments...............................................................................................................3
Conclusion.....................................................................................................................................10
References......................................................................................................................................12

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SOCIAL RESPONSIBILITY AND IMPACT

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SOCIAL RESPONSIBILITY AND IMPACT
Introduction
In the famous essay by Milton Friedman, he argues that the business organizations must
concentrate on increasing profits rather than just focusing or exercising on social responsibility.
In his essay, Milton Friedman demonstrates that doctrine of social responsibility is a socialist
doctrine. The entire course of the essay is explains the ways in which the business organizations
must concentrate on focusing on the profits. The essay by Milton Friedman, states the main
responsibility of the business organization is to its shareholders. They are considered as the one
of the important aspect of the business organization and they are the only interest group to which
the business organization must be social responsible. Further stated by Milton Friedman in his
essay, the overall goal of any business organization is to maximize the return of the shareholders.
It has been further argued by Milton Friedman that the shareholders of the business organization
can take decisions to what social initiatives they choose to take part in. Milton Friedman
introduced the theory in the year 1970 (Backhouse 2017, pp. 103-131). He argues that a business
organization has no as such social responsibility to the soceity or the community; however they
are only responsible towards the shareholders. The purpose of this essay is to assess the
arguments stated by Milton Friedman in his essay 'The social responsibility of business is to
increase its profits'. The essay examines the main arguments and proposes counter arguments.
Lastly, it sums up the main points and concludes the essay.
Discussion and arguments
Milton Friedman argues in his essay 'The social responsibility of business is to increase
its profits' that spending the resources of the company on any “social causes” implies that the