Which of the following is true regarding the efficiency perspective of social responsibility,according to Milton Friedman?
A) The welfare of the community is the firm's responsibility.
B) Managers who are owners must act in the best interests of society and stakeholders.
C) Managers should maximize profits for the shareholders in the business.
D) Firms have obligations not only to shareholders but also to society.

Question

Quizplus · Accepted Answer

According to Milton Friedman, the efficiency perspective of social responsibility states that the primary responsibility of businesses is to maximize profits for their shareholders. This means that managers should focus on making decisions that benefit the financial well-being of the company, rather than on fulfilling social or environmental goals. Thus, the correct option is C - Managers should maximize profits for the shareholders in the business.

Which of the Following Is True Regarding the Efficiency Perspective