Business Ethics and Social Responsibility

Running Head: BUSINESS ETHICS

Compare and Contrast Ethical Perspectives:

Friedman vs. Drucker, Murphy

Chad Mcallister, PhD.

Northcentral University

February, 2013

Abstract

The challenge for many businesses is weighing the drive for profitability with ethics and social responsibility. In years past the sole purpose of a business was to make a profit. This profitability, if used wisely, would spill over into the community and all would reap the rewards. The business focus was to stay in business. As society became more aware and large corporations performed unethically a revolution was born. The public, the media and politicians even, began to hold corporations accountable for perceived unethical practices, especially those that influenced or were believed to be socially irresponsible. Businesses soon found themselves wearing the persona of an individual, not the legal entity as described in corporate documents. This infusion of ethics and responsibility has produced a challenge for academics and business professionals alike; each trying to clearly define and apply business ethics and social responsibility within a free enterprise and private property legal framework. This essay will examine the research and opinions of three authors: Milton Friedman (2008); Patrick Murphy (2009); and Peter Drucker (1981). Offering a comparison and contrast of the authors views and opinions.

The terminology of social responsibility and business ethics has been relentlessly applied within the modern business world of late. What is in stark contrast is the philosophies and business related intricacies that various businessman and businesswoman attempt to apply to business societies and the market. The writings of Friedman, Drucker and Murphy offer some interesting insight regarding the terms “social responsibility” and “business ethics” that are so freely thrown into the day-to-day conversation of business. What must be...