Economist Milton Friedman points out that corporate officers have no obligation to support social causes as hiring the chronically unemployed or reduced pollution beyond that mandated by law. Their sole task is to maximize profit for stockholders while obeying the law and to ensure competition without deception or fraud. This directly contradicts with Freeman’s stakeholder theory. Freeman argues that for the business to be successful, the entrepreneur has to satisfy, not only the shareholders, but also the employees, customers, suppliers, financiers, communities as well. Another example that did not follow “The Social Responsibility of Business”
Friedman also emphasizes that corporate executives are directors are not qualified to do anything other than maximize profit. The reason is business people are expert at making money, not at making social policy, and it is by making money that they contribute to human welfare. These social problems should be left to the governments and social service agencies. The business news from New York Times on how CVS quit selling tobacco products goes totally against Friedman’s point of view as CVS lost an estimated sales of 2 billion dollars. Although Friedman thought, CVS executives weren’t qualified to makes these decision, the executives thought that cigarettes and providing health care just don’t go together in the same setting.

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