Corporate Social Responsibilty

MiltonFriedman.jpg
Once again I risked a look on the corporation movie. Amongst others, there is Nobel prize winner Milton Friedman speaking.
Here is what he thinks about a company’s CSR:

A business cannot have social responsibilities as it is an artificial person. It’s the people who have responsibilties. And in business, a manager’s responsibilty is to create shareholder value. If a manager decides to spend money for general social interest he would spent the money of the shareholders. It is thus the best way to give the shareholders their money so that they can decide what to do with it.

A business man has personal social responsibilties to cope with. He may be head of a family, for instance. If this is the case, he must not risk his job by ignoring the shareholder’s interests.
for further reading: “The Social Responsibility of Business is to Increase its Profits” by Milton Friedman

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Posted in corporate sustainability
One comment on “Corporate Social Responsibilty
  1. jeremy says:

    I’m no fan of Milton Friedman, but I think he is right. He is arguing against CSR based purely on philanthropy that has the potential to raise firms’ costs of production. A company strategy founded on the principles of sustainable development will reduce firms’ costs of production.

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