CIMA BA4 · Chapter 8 · Question 4 of 10
Which view of CSR is most closely associated with the economist Milton Friedman?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The social responsibility of business is to increase its profits, within the rules of the game
Explanation
Friedman argued that the main social responsibility of business is to use its resources to increase profits, provided it stays within the rules of the game, meaning open and free competition without deception or fraud. He did not argue that businesses can ignore the law, and the balancing of stakeholder interests reflects stakeholder theory.
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