Friedman Doctrine Theory

In the field of economics, there are few men who cast a bigger shadow than Milton Friedman. One of his (among many) central ideas is the Friedman Doctrine which states that corporations have no social responsibility (as long as they play by the rules) beyond profit maximization. This approach is often criticized by those that believe corporations should be good "corporate citizens".

For this paper, you will research the life and career of Milton Friedman providing an overview of his life and main economic theories paying particular close attention to the finer points of the Friedman doctrine. The paper should focus on these main ideas and use at least 3 outside resources:

1. What was Friedman's educational background?

2. What school of thought is he associated with?

3. What are some concepts attributed to him (Friedman doctrine must be explained in detail)?

4. What is your personal position on the responsibility of corporations to society?

5. Can a company be socially responsible and maximize profits (give examples!)?

Friedman Theory

Friedman attended Rahway High school where he graduated with flying colors despite being initially injured in an accident during his early years. He went on to obtain a bachelor’s degree from the University of Rutgers. Here, he majored in Mathematics and Economics. An able scholar, he also obtained a Master’s degree from Brown University and a PhD from Columbia University. The PhD was earned in the year 1946.

Milton was completely influenced in capitalism which tended to exist in a free market. K He was of the opinion that free market capitalism would spur production because the private enterprises which had the means of production would have enough free environments to manufacture and produce (Julia, 2019).

The Friedman doctrine proposes that corporate organizations should not be mandated with a responsibility of carrying out activities for the benefit of the local community but rather, they should be responsible for increasing profits and satisfying the shareholders of the organization. Shareholders should be focused upon because they invest their resources to further production (Sociologyindex.com, n.d).

I believe that today, CSR is an important aspect of every firm in poverty alleviation and gaining acceptance in the society or community. If a company carries out a lot of Corporate Social Responsibility, it will be able to gain trust and people will flock to it hence increased sales and profits (Ellie, 2018)

Reference

Ellie C, (2018).The importance of Corporate Social Responsibility for your business

Retrieved from: https://www.highspeedtraining.co.uk/hub/importance-of-corporate-social-responsibility/ Accessed on 19/7/2019.

Julia, (2019). Milton Friedman

Retrieved from: https://www.investopedia.com/terms/m/milton-friedman.asp Accessed on 19/7/2019

Sociologyindex.com, (n.d). Friedman doctrine

Retrieved from: http://sociologyindex.com/friedman_doctrine.htm. Accessed on 19/7/2019