Final answer:
According to Milton Friedman, the moral responsibility of businesses is to b. maximize shareholder wealth. He proposed that businesses should focus on profits while adhering to legal requirements, with the government responsible for setting laws that protect society.
Step-by-step explanation:
In Milton Friedman's view, the moral responsibility of businesses is Maximizing shareholder wealth. Friedman's perspective, outlined in his influential 1970 essay, posits that executives and employees of a company have an obligation to make decisions that will maximize the company’s profits and thus the profits of shareholders. This concept, often associated with shareholder primacy, contends that a firm's managers should act in the best interests of shareholders, given that they invest capital and effectively own the company.
Friedman asserts that it is the role of the government to regulate businesses and establish laws that prevent harm to society. He argues against businesses having direct social responsibilities; instead, executives should focus on increasing shareholder value, while abiding by the laws and regulations established by governmental authorities. The ethical responsibility for businesses, according to Friedman, does not extend to balancing social and environmental concerns or providing employment opportunities unless these actions contribute directly to profit maximization.