CASE SUMMERY,

Reading 5-1
Case Summary
The case is all about is about social responsibility of business organization. In the given
case, many scholars have given different views. Milton Friedman, Paul Snowden, John Makey,
Rodgers, has given the different views about social responsibility of business. Some of them say,
social responsibility of business is to earn its profits, somebody says business is not only
concerned with profits but it should desirable social needs.
Thirty five years ago Milton Friedman wrote a article for The New York times magazine
there he said the social responsibility of business is to earn profits by fulfilling some social
responsibilities. At that time It was true somehow, but later on a economist Lecture of University
of Chicago said that businessman who thinks in way are unwitting puppets of the intellectual
forces that have been undermining the basis of free society these past decades. Then founder and
CEO of whole foods John Makey came and he totally disagreed with Friedman. John Makey
concluded that the Friedman description is too narrow for his and others business. He was not
satisfied with Friedmans view because he believes that enlightened corporation should try
creating value for all of its constituencies. He thinks that the purpose of business organization is
to earn profit but the Friedman views was totally ignores the stakeholders such as- Employees,
customers, community and customers are not linked with Friedman view. John Makey shows
many different examples why he does not argue with Friedman views. He thinks that customer
happiness and satisfaction is most important and that should be given more priority than profit
oriented business. Furthermore, there is no best way to satisfy stakeholders for a long time and a
capable manager should cope with different situations. The Article examines green marketing

CASE SUMMERY,

and corporate governance and identifies elements of each that encourage firms to engage only
superficially in corporate social responsibility yet trumpet those efforts to eager consumers and
investors.
Thus, different scholars had given the different views of social responsibility of business
organization. We know that different people may have different views and way to work out but
they should fulfill social responsibilities. The Article proposes reforms and protections designed
to increase corporate social responsibility, root out green washing, and recognize liability for
corporate social responsibility frauds on consumers and investors