Question

A person who follows the shareholder view of corporate social responsibility believes that a corporation's "social responsibility" is to maximize its profits and follow all applicable laws?

1) True
2) False

Answer 1

The shareholder view of corporate social responsibility aligns with Friedman's perspective that a corporation's main goal is to maximize profits for shareholders while following the law, which makes the statement true.

Step-by-step explanation:

A person who follows the shareholder view of corporate social responsibility indeed believes that a corporation's 'social responsibility' is to maximize its profits and adhere to all applicable laws. This perspective aligns with the views of economist Milton Friedman, who is well-known for advocating that the primary goal of a business is to increase its profits for the shareholders. Legal and ethical considerations come into play, especially considering whether corporations also possess moral responsibilities beyond just legal ones. While the shareholder view focuses on the fiduary duty to shareholders, it's worth noting that this is a contentious topic with alternative theories such as stakeholder theory that promote balancing the interests of all parties involved with the firm.