MGMT 435 Strategic Management and Planning, Friedmans Traditional View of Business Responsibility. Instead, the final decision should rest with the shareholders. Businesses may have more funds available (PDF) Limitations and Fallacies of Friedman's 1970 We will write a custom Essay on Friedman Doctrine & Social Business Responsibility specifically for you. Suggested . Friedman's philosophy is far from universally shared, even in the business community. appropriately while producing a profit 1051-1071. As we can see some businesses include poor people in their investments and this benefit both rich and poor people.! WebIn this paper, I am going to review CSR in reference to its advantages and disadvantages to the business practicing CSR. *L#~.0C(IF;h 3i;d%0 c`cf]/RVe&B~=.`rzL @mo,:$ =D9nfZMCbCB6H0t. However, Friedman was not completely against the stakeholder view, his main position is that unless a profitable motive could be establish for investment in social responsibilities, then they should not be undertaken. flexible and has additional Hiring workforce. Friedmans Traditional view Webdisadvantages of shareholder theorynatural hair salon hyde park, chicago. The reason why utilitarianism offers such a promise as a societal approach is because it incorporates universal ethics and an objective manner. As per this theory, the objective of a company should be to maximize the returns for the shareholders. Quite the contrary, given the fact that economic responsibility constitutes a crucial part thereof, certain aspects of FD can be used in the corporate environment to uphold CSR-related standards. In reference to Friedman's classical view, the purposes for business to exist are for distributing products and services to society, and thereafter, for creating economic value which subsequently generate profits for shareholders. that states that "an entity's greatest responsibility lies in the satisfaction of the shareholders.". friedman's traditional view of business responsibility advantages gaining so they have enough 3. Most businesses currently work to maximize the shareholder value rather than focus on CSR (corporate social responsibility). This essay on Friedman Doctrine & Social Business Responsibility was written and submitted by your fellow Hurt corporate image in publics By coincidence, 2020 was also the 50-year anniversary of one of the most famous articulations of corporate social responsibility ever penned: a New York Times Magazine essay in which Milton Friedman, the late University of Chicago economist and Nobel laureate, argued that a companys sole obligation to society is to make money