Friedman Response

* Response to Friedman

* In Milton Friedman’s article entitled “The Social Responsibility of Business is to increase its Profit,” he argues the point that businesses should not worry about social consequences, but rather that they should focus on profitability. When you first read this article, it does seem as though Friedman cares only about profit maximization. However, one of the last sentences stuck out more to me "there is one and only one social responsibility of business―to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game." He is not advocating money over everything, but rather a way to have higher profit margins while abiding by rules. If we abide by these already existing laws, firms are more likely to do social good than if we urge them to do so. The laws that they must abide by keep them accountable for their actions, so it isn't just a free for all. In this sense, I do agree with Friedman. He's not saying that we shouldn't care about the laborers or their working conditions, but rather that the reason a firm is created is to make money, so that is top priority. So we should not hinder this, but expect that they will abide by the laws due to accountability.

* I also think that businesses that pay more attention to this “social responsibility” are more successful. When companies do good things, they are recognized by the media, which introduces new consumer markets and creates more money. Focusing solely on profits may be good in the short-run, but companies that are concerned with social responsibility will be more successful in the long-run, as they will have built loyal customer bases who continue to spend money with them, long after accountability has caught up to the profit-centered companies.