Which of the following best describes the view taken by Milton Friedman in relation to the role of companies?
A) Companies are an integral part of society, and as such should adopt the highest ethical principles.
B) Companies, as part of society, should act in the interests of the harmonisation of society and the environment.
C) Companies should detach themselves from the environment and focus on maximising the benefits to society.
D) Companies should distance themselves from the community in which they operate and focus solely on maximising the returns to shareholders.

Question

Quizplus · Accepted Answer

Milton Friedman believed that the sole responsibility of a company is to maximize profits for its shareholders. He argued that any other social responsibility, such as promoting ethics or environmental sustainability, would be a violation of their fiduciary duty. Friedman believed that a company should distance itself from the community and focus solely on generating profits.

Which of the Following Best Describes the View Taken by Milton