business ethics

Frank tries to refute Friedman, as Arrow previously did. Frank considers the one responsibility that Arrow ignores, that the action that the CEO of a company takes in self interest, and may also be socially responsible. Friedman offers cloaking. Repeated interaction, the use of paying on time, all look socially responsible but they are not. They are forms of prudence. We need them. These types of interactions, which involve honest people are illustrations of prudent …

…of a free market society because it subscribes to the view that CEO’s have social responsibilities. There really are none. supporting the ideology that there are social responsibilities when there aren’t. Cloaking is like when a large corporation moves into a small town and provides amenities to that community like purchasing fire engines. The real mistake is building up the town where it will attract better workers and reduce wage demands and theft.