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.
About this quote
- What does it mean?
- Friedman argues that corporate executives' sole responsibility is to maximize profit for stockholders within legal bounds.
- In plain terms
- Business leaders should focus only on making money for owners if they follow the law.
- What can you take from it?
- Corporate social responsibility is not a primary duty of executives.
Where it applies
Putting it to work
Questions to consider
- What limits should exist on profit-seeking?
- Who defines the law?
Another view
This view ignores potential long-term benefits of ethical behavior.
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