Milton Friedman's argument in regards to social responsibility in the corporate world is the perspective that implies businesses care more about making profits and growing than social responsibility and the safety of those working it the companies (Schaefer, 2007). He argues that corporation should draw their focus on activities that relate to the company's profits and exclude those businesses that do not generate returns.
The philosophy of Milton Friedman played a role in BP management’s action during the Gulf oil spill. Given the increased demand for oil due to increased consumption, and robust oil prices. This has allowed companies to go miles beneath to extract deep water oils. In consideration of this strategic direction, it seems BP would sustain its profit and attain a competitive advantage if it continued its deep-water exploration and production in the Gulf ( Friedman, 1970 ).
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At the time BP decided on not installing the acoustic backup switch, there was no any legal requirement of doing so. According to Milton, corporations have a right to air their opinions by petitioning against safety mandate that is more costly. This is exactly what BP did. Friedman argues that the political activities of a corporation should aim at increasing the value of its shareholders (Micewski & Troy, 2006). The company had been making good profits and would have been able to survive an epic catastrophe.
Apart from free-market ethics, another ethical framework is utilitarianism. According to the utilitarianism, the right way is to choose the option that is likely to produce more overall good. However, in a utilitarian analysis, it is not easy to untangle the harm was done and the benefits flowing from a problematic scenario (Micewski & Troy, 2006).
References
Friedman, M. (1970, Sept. 13) The Social Responsibly of Business is to Increase its Profits. New York Times Magazine. Retrieved from http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html
Micewski, E. R., & Troy, C. (2006). Business Ethics – Deontologically Revisited. Journal of Business Ethics , 72 (1), 17-25. doi:10.1007/s10551-006-9152-z
Schaefer, B. P. (2007). Shareholders and Social Responsibility. Journal of Business Ethics , 81 (2), 297-312. doi:10.1007/s10551-007-9495-0
