Abstract
The Debate: What Is The Goal Of An Organisation?
In his seminal article “The Social Responsibility of the Business is to Increase its Profits”, Milton Friedman argued that:
“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 the rules of the game, which is to say, engages in open and free competition without deception fraud.”
Milton Friedman’s views received many criticisms. In 1973, Peter Drucker argued in his classic book, Management, and suggested that “There is only one valid definition of business purpose: to create a customer…It is a customer who determines what a business is.
In his seminal article “The Social Responsibility of the Business is to Increase its Profits”, Milton Friedman argued that:
“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 the rules of the game, which is to say, engages in open and free competition without deception fraud.”
Milton Friedman’s views received many criticisms. In 1973, Peter Drucker argued in his classic book, Management, and suggested that “There is only one valid definition of business purpose: to create a customer…It is a customer who determines what a business is.
| Original language | English |
|---|---|
| No. | 2 |
| Specialist publication | AIB Review |
| Publisher | Australian Institute of Business |
| Publication status | Published - 20 Aug 2020 |
