Prepare A 2-3 Page Paper Using APA Format Discussing The Mil

Prepare A 2 3 Page Paper Using Apa Format Discussing The Milton Friedm

Prepare a 2-3 page paper using APA format discussing the Milton Friedman Goal of the Firm. Does this goal still apply to our understanding of the role of the business firm in society? Provide examples to support your understanding. Does government or society have a role to play in expanding the Friedman discussion? Your paper should reflect scholarly writing and current APA standards. Please include citations to support your ideas.

Paper For Above instruction

Milton Friedman, a renowned economist, articulated a foundational perspective on the primary goal of the business firm. According to Friedman (1970), the fundamental goal of a corporation is to maximize shareholder wealth, emphasizing that the company's primary responsibility is to its owners or shareholders. This perspective positions profit maximization as the central focus, asserting that engaging in social responsibilities beyond legal obligations can detract from efficiency and economic performance.

In contemporary society, the Friedman goal continues to influence how businesses perceive their role within the economy. Many corporations prioritize shareholder value, focusing on strategies that boost stock prices and dividends. For example, technology giants like Apple and Google have historically prioritized innovation and profitability, aligning with Friedman's assertion that the firm's main goal is profit maximization. However, this focus has come under scrutiny amid increasing awareness of issues such as environmental sustainability, social justice, and ethical conduct.

Critics argue that Friedman's narrow view neglects the broader social responsibilities of businesses. Modern expectations increasingly demand corporate social responsibility (CSR), where firms actively contribute to societal goals beyond profit generation. For instance, Patagonia exemplifies a firm that integrates environmental sustainability into its business model, even at the cost of short-term profits, demonstrating a shift toward stakeholder-oriented goals. These examples suggest that the role of the firm in society is evolving to encompass social and environmental considerations alongside economic ones.

Furthermore, questions have arisen regarding whether government or society should play a role in expanding or redefining the goal of the firm. Government regulations, such as environmental laws and labor standards, serve to align corporate actions with societal interests. For example, the introduction of carbon pricing mechanisms aims to incentivize firms to reduce emissions, balancing economic goals with environmental sustainability. Additionally, societal pressures and consumer activism influence corporate strategies, compelling companies to adopt more socially responsible practices.

Some scholars argue that expanding the goal of the firm to include social and environmental objectives can lead to sustainable long-term growth. Friedman himself acknowledged that corporations should obey the law and ethical norms but believed that social issues were best addressed by policymakers, not individual companies. Nonetheless, the increasing integration of CSR illustrates a societal acknowledgment that business success is intertwined with social well-being. Therefore, governments and society have an essential role in shaping and expanding the corporate goal to meet contemporary challenges.

In conclusion, while Milton Friedman’s emphasis on profit maximization remains influential, the modern understanding of the firm’s role has broadened to include social and environmental responsibilities. Examples from various industries demonstrate that integrating stakeholder interests can be compatible with corporate success. Governments and society play crucial roles by establishing regulations and societal expectations that encourage firms to contribute positively beyond mere profit. As the global economy faces complex challenges such as climate change and social inequality, the role of the firm must adapt accordingly, fostering a balance between economic objectives and societal needs.

References

• Friedman, M. (1970). The social responsibility of business is to increase its profits. The New York Times Magazine.
• Porter, M. E., & Kramer, M. R. (2006). Strategy & society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78–92.
• Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman.
• Schraeder, M., Traina, M., & Self, D. (2005). Clarifying the social sourcing of ethical decision making in global business: Fostering responsible corporate citizenship. Journal of Business Ethics, 59(1), 17–24.
• Carroll, A. B. (1999). Corporate social responsibility: Evolution of a definitional construct. Business & Society, 38(3), 268–295.
• Hart, S. L. (1995). A natural-resource-base view of the firm. Academy of Management Review, 20(4), 986–1014.
• McWilliams, A., & Siegel, D. (2001). Corporate social responsibility: A theory of the firm perspective. Academy of Management Review, 26(1), 117–127.
• Banerjee, S. B. (2007). Corporate social responsibility: The good, the bad and the ugly. Critical Sociology, 33(1–2), 51–79.
• Moon, J. (2007). The contribution of corporate social responsibility to sustainable development. Sustainable Development, 15(5), 296–306.