Economist Milton Friedman argued that ethical behavior followed and practiced by organizations is the same as:
A)cost minimization.
B)wealth maximization.
C)sales minimization.
D)output maximization.

Question

Quizplus · Accepted Answer

Milton Friedman believed that the only social responsibility of a business is to maximize profits for its shareholders. He argued that ethical behavior by businesses is equivalent to wealth maximization, as it is ultimately in the best interest of the company and its shareholders. Therefore, the ethical behavior of an organization should align with the goal of maximizing wealth.

Economist Milton Friedman Argued That Ethical Behavior Followed and Practiced