Question

Vijay is a firm believer in Milton Friedman's view of a firm's social obligations. With which of the following statements is Vijay most likely to agree?

1) A firm's only social responsibility is to maximize profits for its shareholders.
2) A firm should prioritize social and environmental concerns over profits.
3) A firm should balance its social and environmental responsibilities with its profit-making goals.
4) A firm should not have any social obligations and should focus solely on profit-making.

Answer 1

Vijay would agree that the sole social responsibility of a firm is to maximize shareholder profits, aligning with Milton Friedman's viewpoint that emphasizes profit maximization over other social or environmental concerns.

Step-by-step explanation:

Vijay, who adheres to Milton Friedman's view of a firm's social obligations, would most likely agree with the statement that a firm's only social responsibility is to maximize profits for its shareholders. Friedman's philosophy, famously outlined in his 1970 New York Times essay, postulates that individuals acting on behalf of a firm are obligated to pursue actions that enhance the business's profits and thus the profits of shareholders. He further argued that it falls to the government, not businesses, to set regulations that prevent societal harm.