Question

Which of the following arguments on social responsibility states that a business is socially responsible only when it pursues its economic interests?

A) Stakeholder perspective
B) Social obligation perspective
C) Social responsibility perspective
D) Profit-maximization perspective

Answer 1

The Profit-maximization perspective states that a business is socially responsible only when it maximizes shareholder wealth, aligning with Milton Friedman's view that businesses should focus on increasing profits.

Step-by-step explanation:

The argument that a business is socially responsible only when it pursues its economic interests is best represented by the Profit-maximization perspective. This perspective aligns closely with the views of Milton Friedman, who argued that the primary obligation of a business is to its shareholders and that the social responsibility of business is to increase its profits. According to this view, which is rooted in economic self-interest, business managers should focus on maximizing shareholder wealth, and it is the role of government regulation to address social concerns and consequences arising from business activities. option b. Profit -maximization perspective.