Reflective Report: Corporate Responsibility and Business

This report presents a critical review of Milton Friedman's article, "The Social Responsibility of Business is to Increase its Profits." The report begins with a short synopsis of the article, highlighting Friedman's argument that the primary responsibility of a business is to maximize profits, and the role of corporate executives in this process. It then provides a critical review of the article, evaluating its strengths and weaknesses, and discussing the implications of Friedman's views. The report also includes a reflection on the relevance of the article to the student's studies and future work in managing corporate responsibility. The reflection explores how Friedman's ideas can be applied to business practices and decision-making. The report concludes by emphasizing the importance of understanding the interplay between social responsibility and profitability in contemporary business environments. It also references other relevant works to support the arguments presented.

Managing Corporate
Responsibility

Table of Contents
Short Synopsis.............................................................................................................................3
Critical Review of a Journal .......................................................................................................3
References...................................................................................................................................3

Short Synopsis
The title of the article is “The Social Responsibility of Business is to Increase its Profits”
which is written by Milton Friedman and published under ' The New York Times Magazine'. He
was an American economist and received Nobel prize in 1976 for his research on consumption
analysis, monetary history and the complexity of stabilisation policy. The main points covered in
this journal includes the importance of social responsibility for enhancing the revenue of the
businesses, responsibility of corporate executive, role of corporate executive as principle. Money
spending capacity of corporate executive, political functions related to function of executive,
crises of American revolution, doctrine of social responsibility, difficulty is justifying social
responsibility, long term benefits of an organisation, political principles and "fundamentally
subversive doctrine"
A corporate executive is a person which possess his own right to take decisions related to
the organisation. They have ability to recognise responsibility at single instance. Corporate
executive is a person who itself develops the responsibility towards society and environment due
to which they works as principle not agents. They do not work in the favour of employer rather
they work for benefits of whole the organisation and the society as well. A corporate agent
continuously initiate to take steps so that to prevent environment from pollution and try to
establish those working condition so that to stay adhere to the legislative laws. They spends
money on corporate responsibility to promote social impact and sustainability in the
organisation.
Critical Review of a Journal
The journal clearly states that the effect of corporate social responsibility on enhancing
profit earning of the organisation.
References
Elbing Jr, A.O., 1970. The value issue of business: The responsibility of the businessman.
Academy of Management Journal, 13(1), pp.79-89.
Friedman, M., 1970. The Social Responsibility of Business Is to Increase Its Profits/M.
Friedman/The New York Times Magazine, September 13.
Milton Friedman was one of the intellectual leader in the school of economics of Chicago
and received Nobel prize in economics. The given journal was written by Milton Friedman for

the researcher, society, corporate leaders and economist so that to enhance knowledge. This
article was published with the purpose to provide understanding of duty of a corporate executive
so that they can perform their duties in an effective manner to give benefits to their stakeholders
and society.
Reflection
For me this research paper was a reflection of effect of corporate social responsibility on
the society and stakeholder of an organisation so that to enhance understanding and knowledge.
This article includes that the corporate leaders have their own distinct social responsibility in
order to spend money on that responsibility. This helps the business in selecting the criteria on
which money is to be spent so that to provide maximum benefits to the stakeholders and society.
This research paper gave two theories on political principle i.e. principle and consequences. The
level of political principle involves tax burden and the consequence involve acceptance of those
principle by the public in order to administrate those tax programs. This journal includes doctrine
of social responsibility so that to establish justification on many grounds.
After reading this journal I have developed the ability of application of Corporate social
responsibility on business practices. This journal helped me in understanding the utility of
Corporate social responsibility in earning super profits in short span of time so that to enhance
profitability of business. Further this article helped in finding ways to eliminate external forces
so that to decrease the effect of them in business. The doctrine of social responsibility made me
understand about capitalism profits which helps a business in increasing their goodwill and
market value so that they can be sustained in the industry for a longer period. In addition this
article developed understanding of political mechanism driven activities which are persisted by a
human being in order to share values and responsibilities. This journal is lead by the practical
implementation of practices of corporate social responsibility in the business so that to provide
contribution in the society. This article gave full proof to the stockholder to invest their money in
their own ways to get corporate responsibility so that to gain profits and other benefits over the
society.