Assess Friedman's assertion that business does not have social Essay

Assess Friedmans assertion that business does not earn social responsibilities former(a) than to maximise boodle - Essay Exampleworld on whether sustainable business and corporate social responsibility atomic number 18 a distraction to the sole purpose of which is to act in the best interest of the sh atomic number 18holders (Cosans, 2009392). In other words, when companies act responsibly, they risk foregoing revenue and minimising profits at the expense of a positive disposition in society. Miltons assertion is supported by the diagram below that states a lodges profitability is achieved where Total Costs = Total Revenues.In his article, Friedman sought to understand the statement that corporate executives have a social responsibility as businesspersons (Makower, 2006). This statement meant that corporate executives were not to act in the best interest of their employers or stakeholders. He gave several examples that supported his argument. He questioned whether it is right f or companies to avoid increasing the prices of goods to open to the social good of curbing inflation or that they employ the unemployed in a imprint to reduce poverty or that they set aside a huge amount of their profits to inform pollution contrary to the business objectives. He argued that such measures would turn companies executives into civil servants.Corporate Social state and ethical business practices are considered strategic business moves in the contemporary world. This is because they contribute positively to the companys reputation and the public is willing to buy goods from a company that considers their needs. Ignoring social and environmental issues derriere be damaging to companies in the current times. Companies that pollute the environment risk poisoning the public who are discouraged from buying goods from them. Furthermore, companies that raise the prices of goods to increase their profits may end up losing their customers to their competitors. Finally, comp anies that exploit their workers obtain high employee turnover rates and increased training costs. However, the current globalised