Friedma vs Drucker

Topics: Business ethics, Management, Ethics Pages: 6 (2118 words) Published: October 29, 2010
Friedman vs Drucker
Maria P. Zamora
Northcentral University


This paper compares two articles, one by Milton Friedman, the other one by Peter Drucker and their differences or similarities. Will begin by giving a little introduction about both authors, a summary of their articles, and conclude with comparing both authors point of views. While Mr. Friedman talks about Social Responsibilities about the terms of Social Responsibility without mentioning business ethics, Mr. Drucker refers to Business Ethics as the new way of talking about social responsibilities. In the articles both authors agree than both ethics and social responsibilities are supposed to happen at a personal level not that much as a company or organization.

Keywords: Social Responsibility, Business Ethics


The use of terms of Social Responsibility and Business Ethics has increase during the last few decades. It has also been many changes in the way Companies both large and small interpreted and practice both of these terms in today’s world.

The term of Social Responsibility is described in Wikipedia as “the principle that companies should contribute to the welfare of society and not solely devoted to maximizing profits”. (Social Responsibility, p. 1)

The term of Business Ethics is broader, may involve the aspect of Social Responsibilities, but many other aspect that will contribute to make a business a desirable place for anyone. It is describe in as “Moral Principles concerning acceptable and unacceptable behavior by business people. Executives are supposed to maintain a high sense of values and conduct honest and fair practices with the public”. (“Business Ethics“, n.d., p. 1)

Milton Friedman
Base on Wikipedia “Milton Friedman (July 31, 1912 – November 16, 2006) was an American economist, statistician, a professor at the University of Chicago, and the recipient of the Nobel Price in Economics. Among scholars, he is best known for his theoretical and empirical research, especially consumption analysis, monetary history and theory, and for his demonstration of the complexity of stabilization policy. He was an economic advisor to U.S. resident Ronald Regan. Over time, many governments practiced his restatement of a political philosophy that extolled the virtues of a free market economic system with little intervention by government. As a professor of the Chicago School of Economics, based at the University of Chicago, he had great influence in determining the research agenda of the entire profession. Milton Friedman’s works, which include many monographs, books, scholarly articles, papers, magazine columns, television programs, videos, and lectures, cover a broad range of topics of microeconomics, macroeconomics, economic history, and public policy issues. The Economist magazine described him as "the most influential economist of the second half of the 20th century…possibly of all of it". (Milton Friedman, p. 1)

In his Article “The Social Responsibility of Business is to Increase its Profits” Friedman expose clearly his opposition to what other consider the social responsibility of a business. He mention that the term is pure rhetoric, as business are artificial persons, therefore can not have responsibilities. He said that only persons can have responsibilities. He said that the Executive Office is an employee to the owner of the corporation, so it has direct responsibility to his employers. That regardless is the objective of the corporation be to make a profit in the commercial industry or to provide a service in the case of non-profit organizations, the Executive officer responsibilities will the to optimize those objectives. He continues explaining that the corporate officer is also a person and that in his personal capacity he may have responsibilities, but those responsibilities should be done in his own time. He could refer to those as social...
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