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Argument: the Morel Place of Corporation

In: Business and Management

Submitted By Graciatr7
Words 630
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Edward Freeman and Milton Friedman both had great argument on social responsibility, Friedman argued that “There is one and only one social responsibility of business to increase its profits”. Friedman believed that taking on a social and moral issues is not necessarily effective for a company. This will place those corporations at a better competitive disadvantage if they do not focus on making their profit. Taking on social and moral responsibility is not economically feasible for the corporation. Corporations should just focus on earning a profit and leave social issues to others. It’s in the best interest of a corporation to not deal with social problems. However, if Friedman truly believed in that corporations have no social responsibility then it’s possible that corporations are encouraged to steal, defraud for their customers and shareholder.
Looking at Freeman in the other hand, he believed in moral responsibility to all stakeholders. He believed that those people that are focusing on just profits and shareholder are greedy. As modern corporation continues to grow many social problems will accrue and it’s the corporate world responsibility to address those problems. In the long run it will increase the future of the company and reduce any governmental regulation. If large corporation can spend time addressing their social issues it will benefit, there company. Looking at environmental issues as an example, some corporations have had a negative effect on the environment, wasting natural resources, contributing to global warming, use of fossil fuels. Business should be able to understand how they are effecting the natural environment and it’s their responsibilities to address the issues, however most don’t. Another social responsibility issue business should be looking at is how business market good and services globally. Some business has marketed product in…...

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