Bill would like to propose to the board of directors of Bizmarc, Inc., that the corporation distribute one percent of its pre-tax yearly income to feed the poor. To Milton Friedman and others, Bill's proposal might be considered unethical, because it violates the purpose for which the corporation was established.

Question

Quizplus · Accepted Answer

Milton Friedman argued that the primary responsibility of a corporation is to maximize shareholder value, and using corporate funds for social causes like feeding the poor could be seen as diverting resources from this goal.

Bill Would Like to Propose to the Board of Directors