In the context of corporate social responsibility, which of the following statements would Milton Friedman agree to?
A)Organizations can act effectively as moral agents for all company shareholders.
B)The time, money, and attention diverted to social causes undermine market efficiency.
C)It is socially responsible for companies to divert their efforts to social causes.
D)The marketplace will ultimately determine the importance of social causes.
E)Management's most important responsibility is the firm's longterm survival.

Question

In the context of corporate social responsibility, which of the following statements would Milton Friedman agree to?
A)Organizations can act effectively as moral agents for all company shareholders.
B)The time, money, and attention diverted to social causes undermine market efficiency.
C)It is socially responsible for companies to divert their efforts to social causes.
D)The marketplace will ultimately determine the importance of social causes.
E)Management's most important responsibility is the firm's long­term survival.

Quizplus · Accepted Answer

Milton Friedman argued that the primary responsibility of business is to increase its profits, and that diverting resources to social causes detracts from this goal, thereby undermining market efficiency.

In the Context of Corporate Social Responsibility, Which of the Following