The Social Responsibility Of Business Is To Increase Profits

The Social Responsibility Of Business Is To Increase Profits – Many argue that a business must emphasize the importance of business relationships in order to succeed. Corporate citizenship includes the responsibility of interacting with businesses and balancing the needs of stakeholders and society. By investing in commercial real estate, businesses can provide a higher standard of living and ensure higher wages for people in our communities. I argue that the role of social enterprise is to ensure that business citizenship is attached, not simply to “maximize profits”. This approach to balancing society and profit can be seen in Elkinton’s Triple Bottom Line which aims to balance the 3 “P’s”; Profit must also be considered along with environment and environment as stated by Profit, People and Planet Business. However, in his 1970 New York magazine article “The Social Responsibility of Business to Increase Profits” [1]

, Friedman “attacks social responsibility, arguing that using shareholders’ property against their interests is unethical, illegal, and unethical”[2]

The Social Responsibility Of Business Is To Increase Profits

. However, in my opinion, Milton Friedman’s conclusion is wrong here. Alex Edmans, professor of finance at the London School of Business, explains that although businesses may be interested in increasing profits, businesses can do so by caring for others. Edmans said that “for business to succeed, social responsibility must be strengthened”.

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. However, to ensure success, businesses must follow Elkinton’s triple bottom line, ensuring the success of community stakeholders and the public.

Yes, there are times when a business can make high profits at the expense of the environment and society. When presented with such a situation, Friedman argued that businesses “should take steps to increase their profits if they stay within the rules of the game, that is, they enter into open and free competition without fraud or deception” [4].

. So it can be said that Friedman would allow actions against the public good if the actions comply with the requirements of the Competition and Markets Authority (CMA) and therefore do not affect the nature of the market. Although I agree with Friedman that businesses should avoid “fraud or deception”.[4]

, I have argued that the social responsibility of business goes beyond “open and unrestricted competition”.[4]

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And that business can and should do more to ensure the success of our communities. These corporate social responsibilities can be seen in Carroll’s Corporate Social Responsibility (CSR) Pyramid. This perspective suggests that businesses should prioritize economic and legal responsibilities, but also emphasizes the importance of morality and love. One prominent businessman who knows this is Dame Igna Beale, CEO of Lloyds of London, saying, “Finding the balance between making more money and doing good for society and people is one of our biggest challenges [in business]”. [5]

. It is clear from this situation that Beale knows that there are many opportunities to increase profits at the expense of people and that there is a limit that a business should use people for higher profits. A common example of this is tax evasion. Big companies like Google, Amazon, Apple and Starbucks are synonymous with tax avoidance. Tax evasion, as distinct from tax evasion, is the use of the law in an attempt to reduce taxes payable by a company and is legal; For this reason, tax evasion “is within the rules of the game”.[4]

, tax evasion that Friedman would accept. Many argue that, although this use of the law is legal, it can be questionable because it allows companies to avoid paying the country. In 2014, it was reported that six of the 10 largest British companies did not pay tax even though their global profits exceeded £30 billion [6]

. In this context, Friedman would argue that these businesses are fulfilling their social responsibility as “profit making businesses” and that these businesses are clearly fulfilling this responsibility, with global profits exceeding $30 billion. However, I argue, the term “social responsibility” implies an obligation to society, and therefore the decision to avoid business taxes, which leads to people’s ignorance of the social responsibility of business, is not profit maximization. By maximizing profits, these six businesses are neglecting society and therefore not fulfilling their duty of care to society.

A Friedman Doctrine‐ The Social Responsibility Of Business Is To Increase Its Profits

However, many argue that the competitive nature of the business market requires tax avoidance in order for businesses to survive. The opportunity cost of taxation, the other best way, is to spend money to increase or decrease the price of goods, which may be due to the increase in profits from tax avoidance that will allow businesses to lower the price of their goods. Without reducing their profit per unit. By lowering the cost of goods sold, businesses are helping society because low-income families will be able to buy more goods, improving their lives. Also, by avoiding taxes, businesses can use the money to expand their companies, reducing unemployment because expanding businesses will require more workers, which means businesses, by increasing profits, avoiding taxes, will be able to improve society and more. many things . It can be argued that “the general duty of business is to maximize profits”.

Yet, I still struggle to agree with Milton Friedman that “the general duty of business is to maximize profits”. Although, by avoiding taxes, businesses can use money to benefit society, businesses only do so when their actions benefit their interests. The good thing about taxes is that the government is elected by the people of the country, not the businesses that are closed due to the importance of sending money to improve the country and increase revenue. It is clear that tax evasion affects society and therefore Friedman believed that “the social responsibility of business is to increase profits” not benefiting society and increasing profits cannot be a “normal transaction of business” but only for business purposes. . . , rather than public works.

In conclusion, I do not agree with the statement “The social responsibility of business is to increase profits” because, in my opinion, the social responsibility of business is to improve their role as corporate citizens. which is usually acquired through practice. Not very profitable because not finding ways to avoid taxes or raising wages will increase production costs to reduce profits but also improve workers’ living conditions.

“Milton Friedman attacks public relations, saying that using shareholders’ wealth against their interests is unethical, illegal, and ineffective.”

Social Responsibility Of Business Is To Increase Profits

“A city designed to maximize its profits while staying within the rules of the game, that is, entering into open and free competition without fraud or deceit”

“Finding a balance between making more money and doing something good for society and people is one of our biggest challenges.”

Six of Britain’s 10 biggest companies pay zero company tax even though they have global profits of $30 billion. Organizations outside their academic field.

The point, ladies and gentlemen, is that greed is – for lack of a better word – good. Greed is righteous. Greed works. Greed destroys, separates and removes the spiritual essence of evolution. Greed, in all its forms – greed for life, for money, for love, for knowledge – is what marked the rise of mankind.

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50 years ago, before the movie Wall Street, Chicago economist Milton Friedman said that, to many, it was the basis for a famous Wall Street speech in an article in the New York Times Magazine titled “The Social Responsibility of Business to Increase Profits.” “

Among his other contributions, when he was awarded the Nobel Memorial Prize in Economics in 1976, his idea that businesses would serve society better if they stopped talking about “social responsibility” and increased shareholder returns.

With great force (last week saw important conferences and a happy review), the article is said to introduce the doctrine of “shareholders first” and, in a short time, the destruction of mischief, great fraud and violent acts.

Although it is not clear from the title of the article, Friedman himself was very concerned with many common goals.

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His idea is that companies that make as much money as possible for their shareholders, those shareholders can use it for public institutions, “if they want to do it”.

Try to think about the goals that the company wants its shareholders to support

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