Which of the following statements is true from Friedman's perspective?

Question

Quizplus · Accepted Answer

Friedman's perspective is that the economic justification for CSR is weak because it is based on the premise that social causes cannot be served by firms and that citizens can never obtain complete satisfaction from corporate giving. Instead, he argues that citizens should invest their funds in the capital markets and make personal gifts to social causes. Thus, option C is the true statement as it aligns with Friedman's view. Option A is wrong as it contradicts Friedman's belief that citizens can make personal gifts. Option B is wrong as it is not relevant to the discussion of CSR. Option D is partly correct, but it misses the main point that Friedman believes CSR is not the responsibility of firms and that it ultimately harms the interests of shareholders.

Which of the Following Statements Is True from Friedman's Perspective