Business 620
Ashley DeCleene
Discussion Board 1
According to Milton Friedman, “Business has only one social responsibility- to make
profits (as long as it stays within the legal and moral rules of the game established by
society). Few trends could so thoroughly undermine the very foundations of our society as
the acceptance by corporate officials of a social responsibility other than to make as much
money for their stockholders as possible.” Explain why you agree or disagree with such a
statement.
While Milton Friedman is a widely known and highly respected member of the Economic
Sciences society, he clearly spent his life focusing on the economics of issues, without weighing
social issues. While making profits is certainly an important factor to any business, the profits,
margins, expenses, and other economical issues are not the only issues that can plague or help a
business. Milton states that “few trends could so thoroughly undermine the very foundations of
our society as the acceptance by corporate officials… other than to make as much money for
their stockholders as possible.” I cannot help but not accept this statement. It seems as if
Friedman is stating businesses are not responsible to the public, rather just the shareholders, and
cause the businesses to not perform as well in different markets. Though I can see how
Friedman may result in being against social responsibility of businesses, for the facts that moral
and legal obligations arise when businesses get involved, the mere fact a business gets involved
helps society. For example, additional information given on Target stated the benefits of Target
giving back 5% of their annual income to support families and communities.
Furthermore, other than the clear benefit that giving financials back to a community can
do to helping grow the business even more, as Christian business leaders, we have an obligation
to spread the word of God through our actions. Philippians 2:4 states “not looking to your own
interests but each of you to the interests of others.” Businesses should not look just to the
interest of profit, but to the communities and the societies that have built them and sustained
them. These businesses not only help a community, but are viewed in a higher moral and ethical
regard, thus, yielding more profit in the long-run.
What is the difference between unethical and unlawful behavior?
In legal terms, unethical behavior is known as malum per se. In other words, normal
members of society recognize and deem the behavior to be morally wrong. While, unlawful
behavior is known as malum prohibitum. In other words, the black letter law (statutes) deems that
the behavior is wrong. Morals do not cause this type of law to be illegal; the black letter law states
it to be so.
Businesses focus on returns for owners or shareholders. Though this is not the only thing
businesses do, this holds a large priority of the success of the business. The manner in which a
business conducts itself can be considered ethical or unethical. For example, Wal-Mart has long
been accused of poor treatment of workers. They are workers who were not receiving proper
medical care and poor pay for work. Though, by law, Wal-Mart is paying the minimum wage of
$7.25 and meeting minimum required healthcare as required by the Health Care Reform Act of
2010, their acts are still considered unethical. Wal-Mart is following the “law,” but society finds
their treatment of workers in business as morally wrong, and the mistreatment of workers.
Illegal behavior is easier to spot. The law clearly states what is and is not expected of
businesses. There are entities set into place to follow the law, criminal and civil, to ensure the
proper conduct of businesses. There are labor boards to ensure proper treatment of workers,
labor unions that have laws in place, and the Better Business Bureau that keeps companies in line
(Petry, E.S., Mujica, A.E., & Vickery, D.M., 1996).
Resources
Petry, E.S., Mujica, A.E., & Vickery, D.M. (1996). Sources and consequences of workplace
pressure: increasing the risk of unethical and illegal business practices. Business
&Society Review, 25 (99). Retrieved from
http://web.ebscohost.com.ezproxy.liberty.edu:2048/ehost/detail?sid=1fc1e6a8-efdd-4a0e-
ab67-
a0d03c2343e7%40sessionmgr112&vid=6&hid=108&bdata=JnNpdGU9ZWhvc3QtbGl2
ZSZzY29wZT1zaXRl#db=bth&AN=4050146.
