The company stated: Today, about half the adult world lives in the informal economy, dealing exclusively in cash.To be one of these estimated two billion people is to face financial barriers that make life risky, expensive and inefficient.Milton Friedman proposed a guiding principle for business ethics in a New York Times article, provocatively titled: “The social responsibility of business is to increase its profits”:…
The social issues may be local, national, or global.
Being a socially responsible company can bolster a company's image and build its brand.
This statement raises the question of whether directors can act in any way to increase profits.
Although Friedman is clear that directors as agents of the business have to play within the rules of the game, this still leaves room for unethical behaviour.
Also, if a company is active in the local community—for example, a bank that offers loans to low-income families—the company will be viewed positively by the community and perhaps boost the company's sales as a result.
In short, building a positive relationship with customers and their communities can lead to increased sales and rising profits.Many employees want to feel like they're part of something bigger.Social responsibility empowers employees to leverage the corporate resources at their disposal to do good.The answer to an ethical question may differ depending on which moral framework is used.For this reason, taking complex and abstract ethical theories and applying them to the decision-making processes of company directors can lead to unresolvable arguments in boardrooms, restaurants, shareholders meetings, scholarly journals and, of course, the media.In this essay, Milton Friedman’s view is discussed and contrasted with the socio-economic view of Corporate Social Responsibility.It will be argued that directors cannot act in any way to increase profits and that corporations should engage in socially responsible activities as it can be shown that they at least have an indirect positive effect on organisational performance.Building relationships with customers and their neighborhoods helps improve the brand's image. (TSLA) has bridged the gap between the corporate world and his socially responsible vision by offering electric-powered cars and environmentally friendly automotive products.Through its Financial Inclusion program, Visa has developed innovative ways of bringing digital cash to places in the world where the financial infrastructure doesn't exist or for people who don't have access to the financial system, like residents of many third-world countries.Friedman thus argues that corporations should focus on those activities that are causally related to company profit, effectively excluding charitable activities that do not directly generate revenue:…[there] has been the claim that business should contribute to support charitable activities and especially to universities.Such giving by corporations is an inappropriate use of corporate funds in a free-enterprise society. has direct responsibility to conduct business in accordance with[shareholder] desires …[i.e.] to make as much money as possible while conforming to their basic rules of the society, both those embodied in law and those embodied in ethical custom.