Milton Friedman's Social responsibility Theory In Business

Milton Friedman, the economist of the winner Nobel prize, pessimistic over all efforts to make the company as a social device. The purpose of the corporation, according to him, only generate economic benefits for the shareholders. If corporations provide most of the benefits to society and the environment, then the corporation has violated its nature. Joel Bakan added in his book, The Corporation, will be used in any way for profit corporation as high.

Friedman concluded that the doctrine of the social responsibility of business working against the free market economic system. This doctrine is also a threat to a free and democratic society. Then Friedman stated, quoted from his book Capitalism and Freedom, that in a free society: " There is only one social responsibility of business, utilizing the natural resources and engage in activities that aim to increase profits, as long as it approprieate to the rules of the game, that's say, engage in open and free competition without deception and fraud."

In fact, Milton Friedman reveals the business of business is only business (the business of business is business). Social responsibility only on the individual and not attached to the company because the company's responsibility is to generate the highest profits for the shareholders.

Milton Friedman (1912 - ) is professor emeritus of the University of Chicago and Nobel laureate economic section in 1976. Milton Friedman was a major pioneer of neoliberalism, the flow in the economy that would like to implement the ideas wherever possible classical liberalism (Adam Smith) century - 20. Milton Friedman has formulated his views on corporate social responsibility in his book, Capitalism and Freedom (1962), but which became well-known in this context is the writing that was published in the New York Times Magazine , 13 September 1970 , under the title The social responsibility of business is to increase of its profits .