BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Overview. Friedman introduced the theory in a 1970 essay for The New York Times titled “A Friedman Doctrine: The Social Responsibility of Business is to Increase Its Profits". In it, he argued that a company has no social responsibility to the public or society; its only responsibility is to its shareholders.

Detailed explanation-2: -The stakeholder model of corporate social responsibility argues that everyone has equal rights, and the legitimate rights of stakeholders should limit the actions of corporations. Interestingly, this model views shareholders not as owners but rather as investors.

Detailed explanation-3: -Friedman argued that returning value to shareholders was the primary responsibility of business and suggested that “Greed is Good.” Shareholders, of course, could invest their money in whatever causes they desired, but Friedman believed companies should focus their own efforts on creating value for shareholders.

Detailed explanation-4: -What is it? In 1970 American economist Milton Friedman wrote a New York Times essay titled “A Friedman Doctrine: The Social Responsibility of Business is to Increase Its Profits.” The theory argues that the main responsibility of a business is to maximise their revenue and increase returns to shareholders.

Detailed explanation-5: -Friedman’s stance was plain: “There is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits.” That view has long influenced management thinking, corporate governance, and strategic moves.