The Social Responsibility of Business

Abstract / Excerpt:

The Role of Business
That the business sector has a central part in the social development of the nation is an engaging proposition. This assertion appears contradictory to the underlying rationale of business which is to accumulate assets. To put business and social development side by side seems to be violative of all tenets of liberal capitalism.
In 1970, a prominent academic by the name of Milton Friedman said that the sole mandate of business is to generate as much profit for its owners/shareholders within the bounds of the legal system and ethical principles. It is the government which has the responsibility and expertise to deal with concerns pertaining to social development.

Full Text

The Role of Business
That the business sector has a central part in the social development of the nation is an engaging proposition. This assertion appears contradictory to the underlying rationale of business which is to accumulate assets. To put business and social development side by side seems to be violative of all tenets of liberal capitalism.
In 1970, a prominent academic by the name of Milton Friedman said that the sole mandate of business is to generate as much profit for its owners/shareholders within the bounds of the legal system and ethical principles. It is the government which has the responsibility and expertise to deal with concerns pertaining to social development.
Admittedly, Mr. Friedman's point-of-view has some strong logic behind it. People go into business because they want to earn money. Revenue is the core premise of this undertaking. Whereas, the additional burden of social concern can be significant constraint to the income potential of the business. The result of which can ultimately be detrimental to the owners/shareholders and to the business endeavor itself.

Info
Source JournalMindanao Law Journal
Journal VolumeMindanao Law Journal Vol.3 No.3
AuthorsAtty. Michael Henry Ll. Yusingco
Page Count8
Place of PublicationDavao City
Original Publication DateOctober 1, 2011
Tags
Preview

Download the PDF file .