What is the difference between the theories of social responsibility by Milton Friedman and Adam Smith?
Milton Friedman defines social responsibility for businesses as maximizing profits, with focused resources and activities to be engaged in, without any acts of altruism. While, Adam Smith had a similar argument based on profits; he, however, believed that public benefits arise from focusing on wealth with the invisible hand`s control of the market which Friedman supports. According to Smith, competing businesses weigh decisions based on social benefits and costs in order to gain higher profits. However, with the growing concerns towards environmental impacts, consumers expect more than product deliverance from companies. To stay afloat, CSR must be seen to be in practice for its absence can damage profitability to greener and better competitors based on findings with 76% of respondents refusing to purchase goods contrary to their beliefs.