Fred, a manager in a multinational corporation, is a supporter of Milton Friedman's instrumental contract. Fred believes that corporations:
A)should actively work to protect the environment of the countries in which they operate.
B)must run welfare programs for the people of the countries in which they operate.
C)need to cease working in less-developed countries.
D)carry no moral obligation to the countries in which they operate.

Question

Quizplus · Accepted Answer

According to Milton Friedman's instrumental contract, the sole purpose of corporations is to generate profits for their shareholders. They do not have a moral obligation to the countries in which they operate, nor should they actively work to protect the environment or run welfare programs. The focus should solely be on maximizing profits within the boundaries of the law.

Fred, a Manager in a Multinational Corporation, Is a Supporter