Businesses Aren't Charities, and We Don't Want Them to Be
Friday, May 21, 2010
Like motherhood and apple pie, corporate social responsibility has achieved iconic status as a feel-good pursuit. Corporations around the world have embraced its charitable philosophy and created divisions devoted to its pursuit.
The problem, however, is that corporate social responsibility — by design and definition — can only go so far. Because no matter how widely a firm defines its reach, and how generous its leadership grows, the primary objective of any for-profit firm in a capitalist system will still be as Friedman described it: to maximize the returns of its shareholders. Or at least not to engage in any activity that undermines those returns.
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