Question

Milton Friedman argues that businesses:

A .should avoid social responsibility whenever it is possible to do so.
B. should be required to use their resources meet their social responsibilities.
C. can only earn profits if they do so in a socially responsible manner.
D. are justified in being socially responsible only if doing so increases the firm’s value.

Answer 1

A . Should avoid social responsibility whenever it is possible to do so.

Step-by-step explanation:

Under the shareholder theory as suggested by Milton Friedman, a corporation should not engage in any type of philanthropy, since that is not its purpose. Instead, the corporation can deliver dividends to its shareholders, who then have the option to donate the money for philanthropic purposes, if they choose to do so.