ACCA BT · Chapter 4 · Question 9 of 11
Which view of corporate social responsibility argues that the only social responsibility of a business is to maximise profits for its shareholders within the rules of the game?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The view associated with Milton Friedman
Explanation
Friedman argued that managers are agents of shareholders and that spending company funds on social causes is effectively taxing the owners without their consent, so a business's responsibility is to make profit within the law and ethical custom. The stakeholder view and the triple bottom line (people, planet, profit) both take a broader view of corporate responsibility.
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