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Milton Friedman stated in 1970 that “there is one and only one social responsibi

ID: 1225712 • Letter: M

Question

Milton Friedman stated in 1970 that “there is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as it ways with the rules of the game, which is to say, engages in open and free competition without deception or fraud

Meanwhile, companies around the world are increasingly integrating sustainable practices into their strategies in line with the 10 principles of the UN Global Compact (see Global Corporate Sustainability Report issued on 2013), and comment in a short write-up (maximum 2 pages) on how these practices contribute to the creation of shared value

Explanation / Answer

These days many companies are incorporating environmental principles in their business practices.

Many companies are trying to go carbon free as part of social responsibility. Many large manufacturing companies still produce considerable amounts of pollution, but they clearly are investing more in clean technologies and such technologies are becoming norm of the industry.

Coal fired power plants are getting less polluting from 90's. They do emit carbon dioxide but many harmful chemicals are filtered out.

Many vehicle manufacturers are following most stringent emission standards that are enacted by law. In future only companies that are in line with pollution laws might be able to survive the regulatory frame work.