Microlearning Lesson

The Social Responsibility of Business is to Increase its Profits

Milton Friedman and corporate responsibility

This short lesson looks at Milton Friedman’s 1970 article, the argument behind the headline and why it still matters in debates about business, markets and responsibility.

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Lesson Overview

Beyond the headline

Milton Friedman’s article is often reduced to one line: that the social responsibility of business is to increase its profits. The argument is more layered than that.

This lesson unpacks the main ideas in the article and reflects on how they sit in today’s debate about long-term value, stakeholder responsibility and the role of business in society.

In this lesson, we explore:

  • Why the phrase “within the rules of the game” is an important caveat
  • The problem Friedman saw with corporate virtue signalling
  • His concern that misleading narratives could undermine the free market
  • How the argument connects to current debates about business responsibility

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This lesson is included in the Sustainable Investment Hub, with annual access to selected courses, guides, webinars and microlearning lessons on responsible investment, ESG and sustainability.

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Short lessons. Clear thinking.

A practical look at one of the most influential arguments in corporate responsibility.

Vincent McCarthy, CFA
Founder, Responsible Investment Institute®