Question

George is a big believer in Milton Friedman’s view on a firm’s social obligations. Which of the following statements will George most likely agree with?

Group of answer choices

Firms should use their own resources to create shareholder profits, as long as they do so legally.

Businesses should engage in open and free competition w/o deception or fraud if and only if their competitors do so as well.

Firms must go beyond their shareholder responsibilities and act in socially responsible ways.

Firms should define value creation broadly to incorporate all stakeholders.

Answer 1

ANSWER

The Correct Option is - Firms should use their own resources to create shareholder profits, as long as they do so legally.

In 1970, on the New York Times Magazine, the Nobel prize–winning economist Milton Friedman resolutely stated that:

“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, which is to say, engages in open and free competition without deception or fraud” .

Reference :  Milton Friedman's Theories on Corporate Social Responsibility. Retrieved from https://ukdiss.com/examples/milton-friedman-corporate-social-responsibility.php?vref=1