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Why, according to Friedman, should the social responsibility of a business be to increase its
In his article, Friedman has provided various reasons why the social responsibilities of an
organization should be oriented to profit making. First, Friedman argues that failing to create
profit while engaging in social responsibilities is not economically acceptable since corporate
executives will be sending resources at the expense of other owners’ money (Friedman, 1970).
The corporate members have critical responsibilities of ensuring that all activities in the business
have fully met the interests of the business owner. Diverting the activities and all the efforts to
serve general social interest will result in a significant reduction of returns the owner expects
from the business. Therefore, if an organization is planning to engage in social responsibilities, it
will be important for the executives to ensure that these social responsibilities are not only
serving a general interest but also generating profit.
Secondly, Friedman argues that a business organization that engages in social
responsibilities without the orientatio …
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