Authors :
KaJuan M. Billings
Volume/Issue :
Volume 9 - 2024, Issue 3 - March
Google Scholar :
https://tinyurl.com/3jarxrxb
Scribd :
https://tinyurl.com/5n83jkay
DOI :
https://doi.org/10.38124/ijisrt/IJISRT24MAR302
Abstract :
This research paper delves into the alignment
of modern corporate social responsibility (CSR) practices
with Milton Friedman's theory that a corporation's
primary responsibility is profit maximization for its
shareholders. It examines the pharmaceutical, banking,
and food and beverage sectors to assess Friedman's
theory's relevance in the current business environment.
Contrary to Friedman's 20th-century view that dismissed
broader CSR obligations, the 21st century has witnessed a
shift towards recognizing corporate duties toward society,
the environment, and a broader stakeholder group. The
study scrutinizes how these sectors balance profit goals
with social responsibility, including sustainable investing,
responsible lending, sustainable sourcing, waste
management, and nutritional transparency. Employing a
mixed-method approach with data from corporate
reports and sustainability indices, preliminary findings
indicate a spectrum of adherence to Friedman’s profit-
centric model versus a comprehensive CSR approach.
Results show that while profitability remains central,
many corporations have integrated CSR into their
business models to varying degrees, influenced by a
complex mix of factors. This nuanced exploration
provides insights into the evolving nature of CSR,
offering a critical perspective on Friedman's relevance
today and the degree to which corporations have
embraced broader social responsibilities. It lays the
groundwork for future research on the interplay between
corporate profitability, shareholder value, and social
responsibility, contributing valuable information for
stakeholders, policymakers, and researchers interested in
corporate ethics and sustainability.
Keywords :
Corporate Ethics, Corporate Social Responsibility, Corporate Governance, Milton Friedman.
This research paper delves into the alignment
of modern corporate social responsibility (CSR) practices
with Milton Friedman's theory that a corporation's
primary responsibility is profit maximization for its
shareholders. It examines the pharmaceutical, banking,
and food and beverage sectors to assess Friedman's
theory's relevance in the current business environment.
Contrary to Friedman's 20th-century view that dismissed
broader CSR obligations, the 21st century has witnessed a
shift towards recognizing corporate duties toward society,
the environment, and a broader stakeholder group. The
study scrutinizes how these sectors balance profit goals
with social responsibility, including sustainable investing,
responsible lending, sustainable sourcing, waste
management, and nutritional transparency. Employing a
mixed-method approach with data from corporate
reports and sustainability indices, preliminary findings
indicate a spectrum of adherence to Friedman’s profit-
centric model versus a comprehensive CSR approach.
Results show that while profitability remains central,
many corporations have integrated CSR into their
business models to varying degrees, influenced by a
complex mix of factors. This nuanced exploration
provides insights into the evolving nature of CSR,
offering a critical perspective on Friedman's relevance
today and the degree to which corporations have
embraced broader social responsibilities. It lays the
groundwork for future research on the interplay between
corporate profitability, shareholder value, and social
responsibility, contributing valuable information for
stakeholders, policymakers, and researchers interested in
corporate ethics and sustainability.
Keywords :
Corporate Ethics, Corporate Social Responsibility, Corporate Governance, Milton Friedman.
