Social Responsibility: A Subversive Doctrine

Sooner or later, says the illustrious economist, the system of voluntary restraint “in the public interest” leads to controls, coercion, diminished freedom

It is said that businessmen or labor leaders have a “social responsibility” that should take precedence over their “private” responsibility to themselves, or their stockholders, or the members of their unions. The most recent application of this doctrine is in President Johnson’s message of February 10, ’ 1965 on the balance of payments, when he proposed “voluntary” restraint by banks in making loans to foreign borrowers and by business concerns in making investments overseas.

MF

About the Author

Milton Friedman

Featured Tags

Sooner or later, says the illustrious economist, the system of voluntary restraint “in the public interest” leads to controls, coercion, diminished freedom

It is said that businessmen or labor leaders have a “social responsibility” that should take precedence over their “private” responsibility to themselves, or their stockholders, or the members of their unions. The most recent application of this doctrine is in President Johnson’s message of February 10, ’ 1965 on the balance of payments, when he proposed “voluntary” restraint by banks in making loans to foreign borrowers and by business concerns in making investments overseas.