“The view has been gaining widespread acceptance that corporate officials and labor leaders have a "social responsibility"... beyond serving the interests of their stockholders or their members. This view shows a fundamental misconception of the character of a free economy. In such an economy there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception fraud. Similarly, the "social responsibility" of labor leaders is to serve the interests of the members of their unions. It is the responsibility of the rest of us to establish a framework of law such that an individual... is, to quote Adam Smith... "led by an invisible hand... I have never known much good done by those who affected to trade for the public good."”

— Milton Friedman , book Capitalism and Freedom

Source: Capitalism and Freedom (1962), Ch. 8 Monopoly and the Social Responsibility of Business and Labor, p. 133

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Milton Friedman 158

American economist, statistician, and writer 1912–2006

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“Few trends could so thoroughly undermine the very foundations of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible. This is a fundamentally subversive doctrine. If businessmen do have a social responsibility other than making maximum profits for stockholders, how are they to know what it is? Can self-selected private individuals decide what the social interest is? Can they decide how great a burden they are justified in placing on themselves or their stockholders to serve that social interest?”

Milton Friedman book Capitalism and Freedom

Source: Capitalism and Freedom (1962), Ch. 8 Monopoly and the Social Responsibility of Business and Labor, p. 133

“So the question is, do corporate executives, provided they stay within the law, have responsibilities in their business activities other than to make as much money for their stockholders as possible? And my answer to that is, no they do not.”

Milton Friedman (1912–2006) American economist, statistician, and writer

Interview "Milton Friedman Responds" in Chemtech (February 1974) p. 72.

“The performance of business leaders during the next decade will play a major role in determining not only business but political and social trends for a long time to come. Here are some of the principal reasons:
- Business leaders control the economic well-being of and stockholder.
- The course of business shapes public opinion.
- Business leaders shape public opinion.
So, in addition to his or her prime responsibility of managing his or her enterprise at a profit, the business leader of today is faced with new and larger responsibilities. And, at the same time, the job of managing his or her enterprise at a profit is increasing in complexity. Consequently, the imposition of additional responsibilities makes the nation’s task of developing an adequate number of properly equipped executive leaders a staggering one indeed.”

Marvin Bower (1903–2003) American business theorist

Marvin Bower (1949) The development of executive leadership. Harvard University. Graduate School of Business Administration. p. v

“Economism is the view that the economy is the most important part of society and that the other dimensions such as politics and education should serve it. Economism has become the ruling ideology, not because of claims of economists, but because of the decisions of political leaders, financiers, corporate leaders, and the general public.”

John B. Cobb (1925) American theologian

Spiritual Bankruptcy: A Prophetic Call to Action (2010)

“While there have been many criticisms of the research in corporate social responsibility, perhaps the most troubling issue is the very nature of 'corporate social responsibility' as if the concept were needed to augment the study of business policy. Corporate social responsibility was often looked at as an “add on” to “business as usual” and the phrase often heard from executives is “corporate social responsibility is fine, if you can afford it.
We need to understand the complex interconnections between economic and social forces. Isolating "social issues" as separate from the economic impact which they have, and conversely isolating economic issues as if they had no social effect, misses the mark both managerially and intellectually. Actions aimed at one side will not address the concerns of the other. Processes, techniques and theories that do not consider all of these forces will fail to describe and predict the business world as it really is.”

R. Edward Freeman (1951) American academic

Source: A stakeholder approach to strategic management, 1984, p. 40

“The whole justification for permitting the corporate executive to be selected by the stockholders is that the executive is an agent serving the interests of his principal. This justification disappears when the corporate executive imposes taxes and spends the proceeds for “social” purposes. He becomes in effect a public employe, a civil servant, even though he remains in name an employe of private enterprise. On grounds of political principle, it is intolerable that such civil servants—insofar as their actions in the name of social responsibility are real and not just window‐dressing—should be selected as they are now. If they are to be civil servants, then they must be selected through a political process. If they are to impose taxes and make expenditures to foster “social” objectives, then political machinery must be set up to guide the assessment of taxes and to determine through a political process the objectives to be served. This is the basic reason why the doctrine of “social responsibility” involves the acceptance of the socialist view that political mechanisms, not market mechanisms, are the appropriate way to determine the allocation of scarce resources to alternative uses.”

Milton Friedman (1912–2006) American economist, statistician, and writer

“A Friedman doctrine‐- The Social Responsibility Of Business Is to Increase Its Profits” (Sept. 1970)

“Why have stockholders?… What contribution do they make, entitling them to heirship of half the profits of the industrial system, receivable partly in the form of dividends, and partly in the form of increased market values resulting from undistributed corporate gains? Stockholders toil not, neither do they spin, to earn that reward. They are beneficiaries by position only. Justification for their inheritance must be sought outside classic economic reasoning…. [and] can be founded only upon social grounds… that justification turns on the distribution as well as the existence of wealth. Its force exists only in direct ratio to the number of individuals who hold such wealth. Justification for the stockholder's existence thus depends on increasing distribution within the American population. Ideally the stockholder's position will be impregnable only when every American family has its fragment of that position and of the wealth by which the opportunity to develop individuality becomes fully actualized.”

Adolf A. Berle (1895–1971) American diplomat

1967, p. xxiii
The Modern Corporation and Private Property. 1932/1967

“The [Labour] moderates split off and that split of the moderates delayed the realignment of British politics for at least one generation and possibly two, because as a conservative passionately believing in freedom under the law and believing that socialism cannot stand for that, the realignment - you hear me say my job is to stay in long enough so that everyone knows that socialism and the British character do not mix, so socialism has got to go - is to get the fundamental realignment which I think is in keeping with the British character, which is two parties, a free enterprise party, because if you have political freedom under the rule of law you have got to have economic freedom as well. It is to bring about that can only be done really by eventually the Labour Party splitting off the Left and rejecting the Clause 4 and the command economy, and then we really should get a realignment.”

Margaret Thatcher (1925–2013) British stateswoman and politician

Interview for The Standard (13 March 1987) http://www.margaretthatcher.org/document/106595
Second term as Prime Minister

“What does it mean to say that “business” has responsibilities? Only people can have responsibilities. A corporation is an artificial person and in this sense may have artificial responsibilities, but “business” as a whole cannot be said to have responsibilities, even in this vague sense.”

Milton Friedman (1912–2006) American economist, statistician, and writer

“A Friedman doctrine‐- The Social Responsibility Of Business Is to Increase Its Profits” (Sept. 1970)

“In order better to grasp the thought of Malthus, let us translate it into philosophical propositions by stripping it of its rhetorical gloss: —
"'"Individual liberty, and property, which is its expression, are economical data; equality and solidarity are not."
"Under this system, each one by himself, each one for himself: labor, like all merchandise, is subject to fluctuation: hence the risks of the proletariat."
"Whoever has neither income nor wages has no right to demand anything of others: his misfortune falls on his own head; in the game of fortune, luck has been against him."
From the point of view of political economy these propositions are irrefutable; and Malthus, who has formulated them with such alarming exactness, is secure against all reproach. From the point of view of the conditions of social science, these same propositions are radically false, and even contradictory.”

Pierre Joseph Proudhon (1809–1865) French politician, mutualist philosopher, economist, and socialist

Source: The Philosophy of Misery (1846), Chapter I

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Milton Friedman 158

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