In 1970 Milton Friedman wrote that there is only one social responsibility for business - to use

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Question:

In 1970 Milton Friedman wrote that "there is only one social responsibility for business - to use its resources and engage in activities designed to increase its profits as long as it remains within the rules of the game, that is, to participate in the open and free competition without deception or fraud." This is the traditional view among free-market economists: that the only social responsibility that law-abiding companies bear is to maximize profits for shareholders.

I\'m afraid I have to disagree. I am not a businessman, and I am not a free market liberal, but I believe that the enlightened company should try to create value for all of its constituencies. From an investor's point of view, the purpose of the business is to maximize profits. However, that is not the purpose of other stakeholders - customers, employees, suppliers, and society. In terms of these groups will define the purpose of the work in terms of its own needs and desires, and each perspective is valid and legitimate.

The two arguments should not be confused with a profit runner. I think I know something about creating shareholder value. When John Mackie co-founded Whole Foods Market 27 years ago, they started with $ 45,000 in the capital. They only had $ 250,000 in our first year of sales. Over the past twelve months, they had sales of over$ 4.6 billion, net profits of over $ 160 million, and a market value of over $8 billion. However, they have not achieved a tremendous increase in shareholder value by making shareholder value the primary purpose of their business.

Of course, there is no magic formula for calculating the value every stakeholder should obtain from the company. It is a dynamic process that develops with the competitive market. None of the stakeholders remain satisfied for long. The mission of corporate leadership is to develop solutions that work continuously for the common good.

Respond to this discussion in 200 words.