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Friedman thus argues that corporations should focus on those activities that are causally related to company profit, effectively excluding charitable activities that do not directly generate revenue:…[there] has been the claim that business should contribute to support charitable activities and especially to universities.Such giving by corporations is an inappropriate use of corporate funds in a free-enterprise society. has direct responsibility to conduct business in accordance with[shareholder] desires …[i.e.] to make as much money as possible while conforming to their basic rules of the society, both those embodied in law and those embodied in ethical custom.
The benefits can be far and wide, including client retention, improved sales, and financial success.
The question of how ethics and morality can be applied to human experience is a vexed one.
This statement raises the question of whether directors can act in any way to increase profits.
Although Friedman is clear that directors as agents of the business have to play within the rules of the game, this still leaves room for unethical behaviour.
Many employees want to feel like they're part of something bigger.
Social responsibility empowers employees to leverage the corporate resources at their disposal to do good.Financial Inclusion helps put people on a path out of poverty, creates productive, empowered citizens, fosters business opportunities and fuels economic growth.When social responsibility is recognized as part of a company's business model, it can attract positive publicity, help attract and retain top talent, and improve relationships with customers and their communities.Building relationships with customers is the cornerstone of a successful company and having a social responsibility policy can impact the buying decisions of customers.Some customers are willing to pay more for a product if they know a portion of the profit is going to worthy cause.The company stated: Today, about half the adult world lives in the informal economy, dealing exclusively in cash.To be one of these estimated two billion people is to face financial barriers that make life risky, expensive and inefficient.In this essay, Milton Friedman’s view is discussed and contrasted with the socio-economic view of Corporate Social Responsibility.It will be argued that directors cannot act in any way to increase profits and that corporations should engage in socially responsible activities as it can be shown that they at least have an indirect positive effect on organisational performance.Friedman argued for a direct form of capitalism and against any activity that distorts economic freedom.Socially responsible activities conducted by a corporation are, according to Friedman, distorting economic freedom because shareholders are not able to decide how their money will be spent.