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Victor Wong
Introduction
as Milton Friedman affirms? Before starting any debate about this topic, first let’s
see what its definition is. According to the Business Dictionary, social
welfare and interests of the society which provides it the environment and
actively contribute to the welfare of society and not only maximize profits.2”
Friedman; then I will express my personal reflection on the topic and tell why a
Text Summary
1
http://www.businessdictionary.com/definition/social-responsibility.html
2
http://www.allbusiness.com/glossaries/social-responsibility/4953984-1.html
Milton Friedman in his article “The Social Responsibility of Business is to
Increase its Profits” states that only people can have responsibilities, and that
responsibilities.
employed by the owners of the business. And its responsibility is to conduct the
business in a way that maximizes the profits while conforming to the basic rules
of the society.
stockholders; therefore, they are to act in a way that is in the interest of those
owners of the business. In this sense, a corporate executive shall not engage in
social activities, unless they are done from an individualistic point of view instead
of from a business point of view because, in the last case, he or she would be
spending somebody else’s money, and not serving the interests of the
employers.
On the other hand, the situation of the individual proprietor differs
Friedman concludes that, in a free society, “there is one and only one
designed to increase its profits so long as it stays within the rules of the game,
Personal Reflection
Companies are created to make money and to be profitable over the time.
Nobody enters a business to lose the invested money. The difference between
the companies that are newly created, in terms of profitability, is how fast the
requiring low initial investment which returns high profits in a short period of time.
However, things are easier stated than done. In real life, new enterprises
face the opposition of many factors that determine their future performance in the
business world. For instance, I can mention the existing and new competitors,
the consumers, the government, etc. This is real life; the business environment is
eliminating or reducing the effects of its weaknesses, continually looking for new
outcome is positive and if they find the business opportunity profitable enough.
Being maximization of the profits their main objective when allocating their
investments, while at the same time, as Friedman stated, conforming to the rules
of society, both embodied in law and those embodied in ethical custom, they
wish that the company has to invest its profits in social activities for the welfare of
the society. Personally, I think Friedman was referring to this idea when he said
stakeholders were to decide that part of the company’s profits are to be spent in
social activities, then they are using their own money as they would receive a
There are many ways to contribute to the society without the need to use
somebody else’s money in the process. The simplest examples I can find in, let’s
say, a business day-to-day are: printing documents only when they are really
needed; writing or printing in both sides of the paper; turning off the lights of the
rooms when nobody is there; turning off the computers and any other electronic
device when they are not in use; using separate trash cans for papers, plastics,
metals, glasses, organic waste, etc. These actions are both easy to accomplish
and meaningful for society’s welfare. The benefits include a huge saving in
monthly expenses since fewer resources and energy are used. Additionally, a
culture of excellence is being created among all the employees. The main idea is
company’s expenses.
Of course, in some cases, the activities listed previously are not enough.
business to remain competitive and survive. These needs may include improving
operational costs, optimizing the allocation and use of the available resources,
improvements can also be socially responsible with the society and its welfare.
required money belongs to the stockholders, whom are the owners of the
business. In this case, I personally do not think the owners would complain about
these actions; on the contrary, I think they would all agree to go ahead with the
plan.
Furthermore, enterprises can invest in technologies that are both good for
the society and for the shareholders. A clear example is BP, a company that
transformed itself from being a local oil company to become a global energy
group. Today, this company is committed to the environment and the society by
hydrogen power, and gas-fired power3. It is true that BP is using the owners’
money to be socially responsible with the society; however, it is also true that,
with these actions, BP wants to maximize the owners’ profits. By doing so, we
can appreciate that a company can comply with the two different approaches to
essay.
meaningful for all the stakeholders being able to collaborate in some way to the
welfare of the society, independently whether or not they make a profit out of it. If
they are willing to do it reducing their profits, they would be more willing to do it if
they know they will make a profit out of it. Furthermore, if I was an investor, I
would love to put my money in something that I know it will be beneficial to both
the society and my bank account. I do not find an investment being ethically
correct if an investor is making money out of damaging and destroying the world,
3
http://www.bp.com
and ruining human lives with things like chemical weapons. But I do find an
ventures which intentions are to save lives or improve the quality of life of the
humanity. I do not consider somebody that thinks the way I think as being
greedy. I believe that this can be a strong motivator for those people who do
think that there can be a better world. This is because they may see that their
Contact Information:
Víctor Wong
http://lasaventurasdevitinho.blogspot.com
kblitz83@gmail.com
Twitter: @kblitz83