The Social Responsibility of a Business Is to Increase Its Profits – Milton FriedmanThe author in his article has stated that only people can have responsibilities and that there is no such thing as “social responsibility” of a business. A corporation is considered as an artificial person and therefore shall have artificial responsibilities. The individuals who are responsible are the businessmen, who can be individual proprietors or corporate executives. A corporate executive is employed by the owners of the business and his responsibility is to conduct the business in such a way that maximizes profits while conforming to the basic rules of the society. He, as a person, may have many other responsibilities that he recognizes or assumes voluntarily, which can be referred to as social responsibilities. These responsibilities correspond to individuals, not to businesses otherwise he would be spending someone elses money, and not serving the interest of the employers. On the other hand, the situation of the individual proprietor differs because if he reduces the return of his company for “social responsibility”, he is in fact using his own money, not others money. The author concludes that in a free society, there is only one “social responsibility” of a business and that is to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, engages in open and free competition without deception or fraud.
Companies are created to make money and to be profitable over time. An ideal venture would require low initial investment with high profit returns in a short period of time. However, in real life, enterprises face the opposition of many factors that determine their future performance in the business world. Because of the rising competition, the company must remain competitive by focusing on its strengths and eliminating or reducing its weaknesses. While complying to the rules of the society, the investors expect profit maximization with the available resources, but they do not necessarily wish that the proceeds are invested in social activities because then they would have to use their own money and hence would receive a lower return for
The Future
While it is true that the new technological approach of the financial sector is beneficial to entrepreneurs, it also has its challenges.
In order to improve the overall quality of life for consumers, a variety of initiatives have to be employed to improve the quality of life for entrepreneurs. The various projects that need to be implemented include:
Reform the regulation of financial institutions. The regulatory mechanisms for financial institutions are to be implemented through the regulation of financial services; which means any and all regulations that cause or restrict the financial sector will be imposed without prior consultation by the regulator, which must include the need to take into account the interests of the companies it regulates. Such regulations should be subject to transparency and scrutiny. Reform of criminal law, which has a considerable effect on the criminal system; this will be difficult to fulfill. Reform of the criminal law on a particular company or corporation is an area known to be controversial.
The various initiatives that need to be adopted include:
Evaluating public, private, and corporate securities. These initiatives are not the only ones that need to be implemented in order to increase market liquidity in the sector; they may be the one most affected. In all of these areas, individuals should be aware of the market effects regarding investment activities. Therefore, all investments that occur in these sectors need to be evaluated in the light of the risks and the potential benefits of the project. Many of these projects have to be implemented by the authorities involved in the sector directly. Moreover, the government must continue to follow the regulatory schemes and regulations in the interest of business.
Evaluating public, private, and corporate securities. These initiatives are not the only ones that need to be implemented in order to increase market liquidity in the sector; they may be the one most affected. In all of these areas, individuals should be aware of the market effects regarding investment activities. Therefore, all investments that occur in these sectors need to be evaluated in the light of the risks and the potential benefits of the project. Many of these projects have to be implemented by the authorities involved in the sector directly. Moreover, the government must continue to follow the regulatory schemes and regulations in the interest of business. Introducing new or long-lasting technology to the sector. A variety of products and services can be created in the sector. These technologies are available by means of different companies and subsidiaries, or through various methods. In most cases, the company’s primary use in these initiatives will be the sale, ownership and administration of technology. But some of these new technologies may need to be adapted to the overall business environment. In addition, in order to manage the complexity of the sector, various technologies may need to be introduced throughout the sector. These include:
Eliminating the need for intermediaries. The regulatory framework through which intermediaries are regulated must be designed to protect the public interest when it should be the private sector’s interest that is served by the intermediaries. In fact, the regulations should not be based on the public interest. However