Question

We discussed the concept of Corporate Social Responsibility and the Friedman Doctrine, Explain how both impact society and why one is better business than the other in your opinion.

Answer 1

In the book, Friedman writes: "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." He says that shareholders in their private capacity are the ones with the social responsibility.

Large companies have wrecked havoc on environment and some vulnerable communities. It is but fair for these companies to donate liberally like build schools, hospitals and other investments in social welfare. This would help offset the negative impact caused on the society due to their business operations.