The Social Responsibility of Business is to Increase its Profits
Milton Friedman’s 1970 article reshaped corporate thinking. This short lesson unpacks his argument and explores its relevance in today’s evolving business landscape.
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Lesson Overview
Milton Friedman’s 1970 article is often reduced to a headline: “The social responsibility of business is to increase its profits.” But the piece is more layered — and more relevant — than most give it credit for.
In this short lesson, we explore the real argument Friedman made, including:
- 📜 Why “within the rules of the game” is a critical caveat
- 🎭 The problem he saw with virtue signalling
- 🏛️ His concern that misleading narratives could undermine the free market
We also reflect on how this argument sits in today’s context — where the line between long-term value and stakeholder responsibility continues to blur.
The goal isn’t to settle the debate — it’s to better understand the thinking that still shapes it.
Short lessons. Clear thinking. Real impact.
A small shift in thinking can make a big difference.
— Vincent McCarthy, CFA
Founder, Responsible Investment Institute®