A Quote by Chip Pitts
The ultimate cause of the October Crisis was the ideological embrace of Milton Friedman's warped but still dominant view that "the only social responsibility of business is to make a profit for its shareholders," and until that socially and economically counterproductive - and empirically, legally and ethically inaccurate - view is corrected, we will continue to have the increasing and more intense crises of global capitalism that we have seen recur with ever greater frequency over the past forty years. Sadly but clearly, the lessons have still not been learned.
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Related Quotes
In the early 1970s, Milton Friedman argued that corporations should not be socially responsible because they had no mandate to be; they existed to make money, not to be charitable institutions. But in the economy of the 21st century, corporations cannot be socially responsible, if social responsibility is understood to mean sacrificing profits for the sake of some perceived social good. That's because competition has become so much more intense.
Over the years, I've been involved in many business crises. I qualify this, since my crises have never involved life and death or the survival of the human race. But they are still crises.
In the coming years, if not sooner, social media will become a powerful tool that consumers will aggressively use to influence business attitudes and force companies into greater social responsibility - and, I suggest, move us towards a more sustainable practice of capitalism.
Business people face increasing pressure from local and global competitors. They face customers who have more and more information about alternatives and more and more access to suppliers from all over the world. Given these pressures, business people are looking for approaches that make sense and will continue to make sense. I think many are fed up with management fads that may or may not provide any benefit and don't continue to work over time.
The hardest thing over the years has been having the courage to go against the dominant wisdom of the time, to have a view that is at variance with the present consensus and bet that view.
But Friedman seemed to share Friedrich Hayek's extreme and inaccurate view that socialism of the sort that Britain embraced under the old Labour Party was incompatible with democracy, and I don't think that there is a good theoretical or empirical basis for that view. The Road to Serfdom flunks the test of accuracy of prediction!
I am very pleased with the progress of the new CBS Corporation. The Company's rapid pace of change and innovative approach to emerging business opportunities can be seen in the many strategic announcements we have made over these past few months. The more focused and more nimble organization we sought to create has become a reality and that aggressive spirit of excellence and innovation will continue to benefit shareholders for many years to come.
I wear two hats. The one is business and increasing my shareholders' value; the other is social responsibility.
We do not view the company itself as the ultimate owner of our business assets but instead view the company as a conduit through which our shareholders own assets.
As to the meaning of "corporate social responsibility," Friedman and I would agree: If a certain action improves the corporation's bottom line, there's no point in labeling it "socially responsible." It's just good business.
Vision, in my view, is the cause of the greatest benefit to us, inasmuch as none of the accounts now given concerning the Universe would ever have been given if men had not seen the stars or the sun or the heavens. But as it is, the vision of day and night and of months and circling years has created the art of number and has given us not only the notion of Time but also means of research into the nature of the Universe. From these we have procured Philosophy in all its range, than which no greater boon ever has come or will come, by divine bestowal, unto the race of mortals.
...Americans...automatically equate dissension with disloyalty. They view any criticism of our existing social, economic, and political forms, as sedition and subversion. ...(" The growing reluctance of Americans to criticize, and their increasing tendency to condemn those who, in ever dwindling numbers, will still voice dissent") is disturbing, deplorable, and truly dangerous.
Speeches by businessmen on social responsibility...may gain them kudos in the short run. But it helps to strengthen the already too prevalent view that the pursuit of profits is wicked.... There is one and only one social responsibility of business-to...engage in open and free competition without deception or fraud.
In terms of companies, they must stand for something bigger. They must be dedicated to something larger than financial results. I reject the Milton Friedman belief that a company's sole responsibility is to the shareholders.
Even though we are a nation that's becoming a minority country, we still have this view where everything is seen through the prism of the dominant culture, which really means white.
What today's business reality makes clear is that brands cannot survive in a society that is failing economically, socially, ethically, and morally.
