The document compares the views of Milton Friedman and Archie Carroll on corporate social responsibility. Friedman believed the sole responsibility of business is to increase profits for shareholders. Carroll proposed a model where corporations have economic, legal, ethical and philanthropic responsibilities. The document provides examples of organizations applying Friedman's view like Ford Motor Co., and Carroll's view like Microsoft and Google. It concludes that Friedman focused on self-interest while Carroll argued corporations should improve quality of life while being legal and ethical.

1. A Comparison of Friedman and Carroll
Milton Friedman Archie Carroll
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2. Table of Content
• Summary of Friedman’s points Slide 3
• Summary of Carroll’s points Slide 4
• Principles to implement at work Slide 5
• Example of organization using Friedman’s applied theories Slide 6
• Example of organization using Friedman’s applied theories Slide 7
• Example of organization using Carroll’s applied theories Slide 8
• Example of organization using Carroll’s applied theories Slide 9
• Conclusion Slide 10
• References Slide 11
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3. Summary of Friedman’s points
• Asserts there is only one social responsibility to business – use its
resources and engage in activities designed to increase profits, as long
as it is engaging in an open and free competition without fraud or
deception
• Firms should make as much money as possible, not just make a profit
but maximize profits
• The corporate executive is to conduct business based on the owner’s
desires
• Firms can engage in broader social activity only if it increases the
shareholder’s wealth
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4. Summary of Carroll’s points
• Economic – perform in a way predictable with amplifying income, focus on being
beneficial, keep up a solid position, keep up a high working proficiency, and be
characterized as reliably gainful
• Legal - perform reliably with legislative law, consent to different administrative controls,
be a law abiding citizen, give products and ventures that meet lawful necessities, and
satisfy lawful commitments
• Ethical - perform reliably with social standards and moral, perceive and regard new or
developing moral standards embraced by society, keep moral standards from being
traded off so as to accomplish corporate objectives, be a decent corporate native,
recognize integrity and ethical behavior run past regulatory compliance
• Philanthropic – perform in a consistent manner with humanitarian projects, assist the
fine and performing arts, participate in charitable activities, assist in public/private
education institutions, and volunteer in projects that enhance the quality of life
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5. Principles to implement at work
• Should not be concerned with just increasing profit margin
• Maintain economic well being of company and local area
• Adhere to local, state and federal legislation
• Be responsible with environmental sustainability
• Make positive impact on local community and abroad
• Don’t let moral standards be compromised by corporate goal
• Company should be transparent
• Company value is the employees, customer, and products
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6. Example of organization using Friedman’s
applied theories
Ford Motor Company
• Early 1970's, to contend with German and Japanese compact autos, Ford consolidated timetable
of 3 1/2 – 2yrs to deliver the Pinto
• Subsequent crash testing demonstrated the fuel tank cracked amid 25 mile a hour backside affect
• To change plans would cost $11 million for every auto with 12.5 million being recalled
• Total cost to society for not recalling – estimated $49,5 million
• Friedman would have contended socially irresponsible to recall, expenses would have adversely
influence the interest of Ford
• For 7 years Ford did nothing until government, legal and media weight caused 1.5 million cars to
be recalled
• Maximizing long-term profit was in-line with Friedman’s position (Schwartz & Saiia, 2012)
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7. Example of organization using Friedman’s
applied theories
Flint River Investigation
• Flint’s drinking water became tainted in April 2014, City impoverished, state
control switched from Detroit water to Flint River, residents complain about color,
taste, odor of the water and health issues
• State officials ignored reports, falsified documents and rigged water tests
concerning lead in water
• Multiple criminal charges against officials for mismanagement of finances, focus
on cost-cutting, priority on balance sheets, neglect health & safety of citizens
• Water-supply engineering companies charged for professional negligence
• No corporate compliance program, no moral compass (Jaeger, (2017).
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8. Example of organization using Carroll’s
applied theories
Microsoft
 Citizenship mission is to serve needs of communities around the
world, fulfill responsibilities to the public
 Works with governments, investors, nonprofits
 Employees’ passion for communities and causes through charitable
giving and volunteering
 Creating opportunities for youth, opportunities for education,
employment and entrepreneurship
 Positive revenue growth, product strategy and ability to deliver great
technology solutions to the market (Smith, 2012)
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9. Example of organization using Carroll’s
applied theories
Google
 Ranked number 1 on Global Corporate Social Responsibility (CSR)
 Citizenship - support of good causes, positive societal influence and
environmental responsibility
 Governance – openness, transparency, ethical behavior, equal opportunity
 Environmental – carbon neutral since 2007, implemented environmental
initiative Google Green (Miceli, 2015)
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10. Conclusion
• While using academical prolific verbiage, the phrase ‘I’ve got to do for
me and mine’ seems to be what Friedman was actually pushing to the
public and yet people apparently loved the idea. He seemed more in
tuned with pontificating caring for oneself and lining the pocket,
regardless of the outcome it would impose on others.
• Carroll seemed to follow inline with the phrase ‘The needs of the
many outweigh the needs of the few’. Do what is good for the
company. However, do so legal, ethically and do not let it negatively
affect the local populace. Do what’s right to improve the quality of
life.
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11. References
Jaeger, J. (2017). Ethics takeaways from the Flint water crisis. Compliance Week, 14(157),
74-75
Miceli, M. (2015). Google tops reputation rankings for corporate responsibility. U.S. News & World
Report. Retrieved on March 19, 2017 from
https://www.usnews.com/news/articles/2015/09/17/google-tops-reputation-rankings-for-corporate-
responsibility
Schwartz, M. S., & Saiia, D. (2012). Should firms go 'beyond profits'? Milton Friedman versus Broad CSR1.
Business & Society Review, 117(1), 1-31. Retrieved from
https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?dir
ect=true&db=bth&AN=72366962&site=ehost-live&scope=site
Smith, J. (2012). The companies with the best CSR reputations. Forbes. Retrieved on March 16, 2017 from
https://www.forbes.com/sites/jacquelynsmith/2012/12/10/the-companies-with-the-best-csr-
reputations/#1a37e7ca4404
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