Milton Friedman's Essay Analysis of The Social Responsibility to Increase Profit

In this article, we will look at the famous Milton Friedman article "Corporate social responsibility is to increase profits." In the following article, Freeman's stakeholder theory is taken into consideration to critically evaluate the article. First, let's see what Milton Friedman is clarifying in his article. The entire content of his article clearly states that the company's sole social responsibility is to participate in activities designed to increase profits as long as it is within the rules of the game, using that resource It seems that it is developing mainly on the basic statement stated in. Friedman, corporate social responsibility is to increase profits

The three goals of Milton Friedman's target company are the largest market value, the highest value of the stock price, and the ownership interest of the owner. Milton Friedman argues that the company's sole responsibility is to increase profits. Friedman believes that executives are employees of employers or shareholders and therefore act as agents of fiduciary responsible persons. The concept of social responsibility means other factors besides increasing profits

Value is the central proposition of the market, please exchange with your value. Unfortunately, when Milton Friedman announced the phrase "corporate social responsibility is to increase profits" and stylized it as "other purely pure socialism", he already It implies free market capital. The end of doctrine. Ugly indications are fully reflected when the focus of the market shifts from "results of listed companies responsible for production" (also called "value") to "value" (stock price) of the shareholder company. The focus is not the value generated, but the number before the company name.

Milton Friedman is famous for saying "Corporate social responsibility is to increase profits." This is an example recognized by many observers. However, while creating and selling functional products, increasing sales and profits, quite a few companies have social / environmental goals. Today's employees, especially the Millennial generation, are seeking higher targets. They want to feel that their work does not simply mean revenue or salary. Higher goals that they can support, support, or be part of can meet these needs, and can lead to more efficient, faithful and attractive employees.