How Friedman viewed the corporate executives and their value inside the companies?
Friedman has argued that a corporation is a soulless, artificial person and legal entity with no responsibilities, only controlled by competition in markets as mentioned. With this, only individuals are thought to have personal social responsibilities and do not have bearings once made corporate executives, for their only responsibilities are towards their employers. This concept refers to the stockholder theory where corporate executives need ‘to conduct business in according with their desires, which generally will be to make as much money as possible’. Yet, according to 1961 Income Tax of the Indian government, associations of persons may be members, companies or firms, which means that corporations do comprise of conscious individuals with the ability and responsibility for moral actions or inactions.
Whilst, Friedman portrayed corporate executives as people moving alone inside a company going against principals, corporate executives do not act on their own accord for plans and goals are in need of the shareholders` approval on company-held board meetings. Additionally, Friedman`s own quote admittedly states ‘generally for profits’ which presents a margin of safety that it is not often true. With the study conducted of 1,585 US corporations with a good CSR image receiving 35% more investment than others. It is possible to get shareholders or investors that have the environment as one of their agendas, for they are also stakeholders. Overall, it is in their best interest to tackle it for stakeholders include employees and the society who are needed for the company to survive. If the company`s image is one that is solely based on profits, it can be viewed as a negatively exploiting company to not be trusted with goods and employability.