Question

Milton Friedman is most closely associated with the stakeholder view of corporate social responsibility.

a. True
b. False

Answer 1

Milton Friedman is renowned for his shareholder theory which states that a business's main responsibility is to maximize profits for shareholders, not the stakeholder view.

Step-by-step explanation:

The statement that Milton Friedman is most closely associated with the stakeholder view of corporate social responsibility is false. Friedman is, in fact, known for his advocacy of the shareholder theory, which posits that the primary obligation of a business is to increase its profits for the benefit of shareholders. In contrast, the stakeholder theory, which is associated with R. Edward Freeman, suggests that a business should balance the interests of all stakeholders, not just shareholders.