The Role of Business Firms

Does this goal still apply to our understanding of the role of the business firm in society? Provide examples to support your understanding.
            According to Milton Friedman, the main goal of a firm is make profits and to provide returns to the shareholders who invested their money into the business. Hence, a business should not indulge in social activities such as helping the needy in the society (Martin et al, 2009). This goal does not therefore apply to the business role of firms in the society. This is so because, for any business to be able to win the hearts of many consumers, it needs to provide assistance to the society. Moreover, providing support to the society acts as a way of creating the awareness of the brand to most people and thus making them to buy the product. Most successful companies, either support the needy or offer financial assistance to different cooperation in a bid to win new markets for their products.

Does government or society have a role to play in expanding the Friedman discussion?

The government and the society do not have a role to play in expanding the given discussion, simply because, firms have the right to support the society (Martin et al, 2009). When firms support the society, they are working according to the dictates of the law, thus they do not break the law. This consequently means that, the society and the government cannot play any role in expanding Friedman’s goals of firms. A firm needs to create a good relationship with the society, and by so doing, it ensures that it attracts new customers, hence increasing productivity and returns in the company.

Reference

Martin, J. D., Petty, J. W., Wallace, J. S., & Coutts. (2009). Value-based management with corporate social responsibility. New York: Oxford University Press.