The view taken by Milton Friedman in relation to the role of companies is best described as:
A) Companies are an integral part of society, and as such should adopt the highest ethical principles
B) Companies as part of society should act in the interests of harmonisation of society and the environment
C) Companies should detach themselves from the environment and focus on maximizing the benefits to society
D) Companies should distance themselves from the community in which they operate and focus solely on maximizing the returns to shareholders

Question

Quizplus · Accepted Answer

Milton Friedman's view is that the primary responsibility of a company is to maximize returns to shareholders, and not to engage in social or environmental initiatives. He argued that any such actions taken by companies would be detrimental to the principle of individual liberty and free markets. Therefore, companies should focus solely on their economic pursuits, and not distance themselves from the community, but prioritize shareholder returns above all else.

The View Taken by Milton Friedman in Relation to the Role