Final answer:
Milton Friedman argued that a business's main responsibility is to its profits and shareholders, with government regulations in place to protect society. While acknowledging the importance of profitability, modern views on corporate social responsibility suggest businesses have a broader role that includes ethical practices and societal well-being. This balance creates debate around the priority of profit versus other stakeholder concerns.
Step-by-step explanation:
The article titled, "A Friedman doctrine—The Social Responsibility of Business is to Increase its Profit," presents Milton Friedman’s opinion that the primary responsibility of business is to increase profits for its shareholders. According to Friedman, it’s the role of government regulations to prevent businesses from causing societal harm, while businesses themselves focus on profit maximization. This perspective has sparked debate, as it seemingly prioritizes shareholder interests above other stakeholders such as employees, customers, or the community at large.
I agree with Friedman that businesses need to be profitable to survive and provide returns to their shareholders, who have invested their capital with the expectation of profit. However, the contemporary view on corporate social responsibility (CSR) challenges Friedman’s doctrine by emphasizing the importance of ethical considerations, environmental stewardship, and social well-being in business practices. Governments are sometimes slow to update regulations, and businesses can take a proactive stance to go beyond what is legally required to benefit the broader society and environment.