The crux of the issue that Friedman tries to dissect is whether businesses acting socially responsible are effectively imposing a tax on those who invest their resources in such firms. Friedman’s argument centers around two ‘political questions’: whether firms have the appropriate mechanisms for determining the socially optimal use of resources, and whether corporations could recognize the repercussions that would arise from their decisions to assume social responsibilities. Friedman simplifies the two ideas into the argument of principle, and the argument of consequence. In answering both, Friedman determines that it is in the best interests for firms to maximize profits. Despite the rather impassive conclusion, there is still much congruence between Friedman’s ideas and more liberal viewpoints. The first idea to note is that Friedman is invoking a deontological, not consequentialist, argument. This is observable in the caveat he includes with his words, that businesses maximize profits within ‘the rules of the game…without deception or fraud’. A consequentialist reading of Friedman’s work would look to identify an ‘ends justifies the means’ sense of reasoning. Friedman however makes clear the means of achieving the ends are important, as profits need to be maximized within the regulatory environment and
The crux of the issue that Friedman tries to dissect is whether businesses acting socially responsible are effectively imposing a tax on those who invest their resources in such firms. Friedman’s argument centers around two ‘political questions’: whether firms have the appropriate mechanisms for determining the socially optimal use of resources, and whether corporations could recognize the repercussions that would arise from their decisions to assume social responsibilities. Friedman simplifies the two ideas into the argument of principle, and the argument of consequence. In answering both, Friedman determines that it is in the best interests for firms to maximize profits. Despite the rather impassive conclusion, there is still much congruence between Friedman’s ideas and more liberal viewpoints. The first idea to note is that Friedman is invoking a deontological, not consequentialist, argument. This is observable in the caveat he includes with his words, that businesses maximize profits within ‘the rules of the game…without deception or fraud’. A consequentialist reading of Friedman’s work would look to identify an ‘ends justifies the means’ sense of reasoning. Friedman however makes clear the means of achieving the ends are important, as profits need to be maximized within the regulatory environment and