the social responsibility of business is to increase its profits. milton friedman.

the corp exec taking other peoples money and spending it for social purposes raises political questions on two levels :

1. principle- imposing a tax and making expenditures with said tax is a function of government. except gov operates with checks and balances and here the businessman is executive, legislator, and jurist. 2. consequences- can he get away with it scot free. forces him to be responsible for is own actions. he can do good but only at his own expense

a business as a whole cannot have responsibilities bc it is an artificial person, therefore who has the responsibility?

businessmen, which means individual proprietors or corporate exeutives

the political principle that underlies the political mechanism is

conformity- individual must serve a more general social interest, must conform even if overruled

eleemosynary purpose

establishing a corporation with rendering a service as his objective instead of establishing a profit

to say that a corporate executive has a social responsibility is to say that he must spend someone elses money

for a general social interest. -could be seen as imposing a tax to stakeholders and then deciding how those tax proceeds will be spent

the doctrine of sr taken seriously would extend the scope of

political mechanism/conformity to every human activity

the doctrine of social responsibility involves the acceptance of the _______________ view that political mechanisms not market mechanisms are the appropriate way to determine __....

socialist, the allocation of scarce resources to alternative uses

the doctrine of sr is a "fundamentally _____________ doctrine"

subversive

the justification for permitting the corporate executive to be selected by stockholders is that

the executive is an agent serving interests of a principal, his stockholders- this disappears with csr.

the political principle that underlies the market mechanism is

unanimity- cooperation is voluntary in a free market, parties to a corporation benefit or they need not participate