“Business Ethics” source

After reading The Social Responsibility of Business is to Increase Profits by Milton Friedman, it occurred me that I had never really considered what the idea of “social responsibility” (as it applies to the business world) really means. On most companies’ websites there is a page or tab dedicated to a “mission statement” or “business model”. Take for example BP’s. The first sentence claims that they strive to “improve quality of life for millions of people”. While this may be true to some extent, it is by no means their first priority. As Friedman points out, the first priority of any for-profit organization is just that, to make profit. So why wasn’t that the first sentence? The issue is that these days, businesses (and those in charge) are being scrutinized like never before when it comes to ethics. In his article on the Huffington Post, Terry Newell gives the example of Mary Barra, CEO of GM, who had to go to extreme measures to “repent” for a faulty ignition switch which caused 13 deaths. In some ways it is no longer a CEO’s job to focus on the prosperity of the company, but instead on the prosperity and happiness of customers and others who could be indirectly or directly affected by it’s actions.

What all of this says to me is that public opinion is priority #1 for most companies. Many people boycotted Chik-fil-A recently not because they were selling bad chicken, but because it became public knowledge that a small percentage of all profits go to anti-gay organizations. This is just one example of countless others out there today.

I think it’s good that companies are being forced to be ethically conscious, but ultimately I agree with Friedman that almost without a doubt the first priority of any business is to make money, and so they should stop hiding under their “ethical” masks.