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The Social Responsibility of Business is to Increase its Profits
by Milton Friedman
The New York Times Magazine, September 13, 1970. Copyright @ 1970 by The New
York Times Company.
When I hear businessmen speak eloquently about the social responsibilities of
business in a free-enterprise system, I am reminded of the wonderful line about the
Frenchman who discovered at the age of 70 that he had been speaking prose all his
life. The businessmen believe that they are defending free enterprise when they
declaim that business is not concerned merely with profit but also with promoting
desirable social ends; that business has a social conscience and takes seriously its
responsibilities for providing employment, eliminating discrimination, avoiding
pollution and whatever else may be the catchwords of the contemporary crop of re-
formers. In fact they are–or would be if they or anyone else took them
seriously–preaching pure and unadulterated socialism. Businessmen who talk this way
are unwitting puppets of the intellectual forces that have been undermining the basis
of a free society these past decades.
The discussions of the social responsibilities of business are notable for their
analytical looseness and lack of rigor. What does it mean to say that business has
responsibilities? Only people can have responsibilities. A corporation is an artificial
person and in this sense may have artificial responsibilities, but business as a whole
cannot be said to have responsibilities, even in this vague sense. The first step toward
clarity in examining the doctrine of the social responsibility of business is to ask
precisely what it implies for whom.
Presumably, the individuals who are to be responsible are businessmen, which means
individual proprietors or corporate executives. Most of the discussion of social
responsibility is directed at corporations, so in what follows I shall mostly neglect the
individual proprietors and speak of corporate executives
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