Milton Friedman's Theory Of Csr Theory
Abstract:
With the economy in a state of flux, developmental factors such as CSR do play a major role in a nation. However, since the birth of the concept, CSR has undergone variations from different scholars of various streams. Though CSR aims at improving the overall development of the economy through market factors, history can also prove otherwise. The well-known American economist and writer, Milton Friedman was one of the initial scholars who brought in the term CSR. However, his theory and definition of CSR is quite different from what we perceive CSR to be today. This paper seeks to analyze and critique Friedman’s hypothesis regarding CSR while relating it to the 2008 Financial Crisis.
Hypothesis:
The adoption of Friedman’s CSR theory into business strategies will lead to the creation of a speculative bubble and thus lead to the meltdown of the economy.
Introduction and explanation of Friedman’s theory:
The idea of Corporate Social Responsibility is not one that has just been introduced.
Milton Friedman states that CSR is “ a fundamentally subversive doctrine' in a free society, and has said that in such a society, 'there is one and only one social responsibility of business - to use its resources and engage in activities designed to increase its profits so long as it stays within
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