Milton Freidman

Milton Friedman tries to answer the question should firms be socially responsible. Taken literally he implies that firms shouldn’t be any more socially responsible then they are required to be. If they are more socially responsible then the firm is taking profits away from shareholders. In this day and age a firm can be socially responsible and utilize the fact to overcome the costs if the consumer is willing reward these firms over firms that aren’t socially responsible. Two factors that impact the consumers decision is their perception and the economy.

The goal of a firm, according to Milton Friedman, is to generate profit for shareholders. According to Milton Freidman if a firm was responsible socially they would be less competitive. This would not be in the best interest of the shareholders. Friedman referred to actions such as reducing prices or cutting pollution below requirements. Friedman does not believe this is the responsibility of the firm but of government and society in general. Firms that put social responsibility ahead of company profits are taking salaries away from employees or dividends from shareholders. (Skousen, M. 2010)

There are many opinions of Friedman’s view of the firm’s social responsibility. The “Six Reasons Companies Should Embrace CSR” is an article written in Forbes magazine by James Epstein-Reeves. The six reasons are Innovation, Cost Savings, Brand Differentiation, Long-Term Thinking, Customer Engagement, and Employment Engagement. Innovation can be used to conserve resources while creating better more efficient products. Cost savings, “One of the easiest places for a company to start engaging in sustainability is to use it as a way to cut costs. Whether it’s using less packaging or less energy, these savings add up quickly. For example, General Mills is on a path to reduce its energy savings by 20% by 2015. According to its 2011 CSR report, after installing energy monitoring meters on several pieces of equipment at its...