--- title: "Meaning & Key Takeaway of: In the early 1970s, Milton Friedman…" description: "\"In the early 1970s, Milton Friedman argued that corporations should not be socially responsible because they had no mandate to be; they existed to make..." image: "https://sms4smile.com/quotes/i/a46/robert-reich-1333_21st-century_in-the-early-1970s-milton-friedman-argue_2509374.jpg" --- # In the early 1970s, Milton Friedman argued that… ![“In the early 1970s, Milton Friedman argued that corporations should not be socially responsible because they had no mandate to be; they existed to make money, not to be charitable institutions. But in the economy of the 21st century, corporations cannot be socially responsible, if social…” quote by Robert Reich](https://sms4smile.com/quotes/i/a46/robert-reich-1333_21st-century_in-the-early-1970s-milton-friedman-argue_2509374.jpg) [Download](https://sms4smile.com/quotes/i/a46/robert-reich-1333_21st-century_in-the-early-1970s-milton-friedman-argue_2509374.jpg) [Open image](https://sms4smile.com/quotes/i/a46/robert-reich-1333_21st-century_in-the-early-1970s-milton-friedman-argue_2509374.jpg) > “In the early 1970s, Milton Friedman argued that corporations should not be socially responsible because they had no mandate to be; they existed to make money, not to be charitable institutions. But in the economy of the 21st century, corporations cannot be socially responsible, if social responsibility is understood to mean sacrificing profits for the sake of some perceived social good. That's because competition has become so much more intense.” [Robert Reich](https://sms4smile.com/quotes/author/robert-reich/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Corporations face pressure to balance profit with social impact, yet profit motives dominate. **In simple terms:** Companies must juggle money and social good. Key Takeaway Seek sustainable profit models. Themes business ethics economics social responsibility Mood critical thought‑provoking Type analytical policy‑oriented When to use this quote - investment decisions - brand strategy - regulatory compliance Key Concepts stakeholder theory capitalism corporate governance Questions to Reflect On - Should profit always trump social good? - How can firms align profit with purpose? A Different Perspective Profit focus may ignore long‑term societal costs. ★ ★ ★ ★ ★ No ratings yet [21st century](https://sms4smile.com/quotes/about/21st-century/) [Argued Corporations](https://sms4smile.com/quotes/about/argued-corporations-1140707/) [Business](https://sms4smile.com/quotes/about/business/) [Century](https://sms4smile.com/quotes/about/century/) [Charitable](https://sms4smile.com/quotes/about/charitable/) [Competition](https://sms4smile.com/quotes/about/competition/) [Corporations](https://sms4smile.com/quotes/about/corporations/) [Corporations Socially](https://sms4smile.com/quotes/about/corporations-socially-1140706/) [Economy](https://sms4smile.com/quotes/about/economy/) [Ifs](https://sms4smile.com/quotes/about/ifs/) [Institutions](https://sms4smile.com/quotes/about/institutions/) [Intense](https://sms4smile.com/quotes/about/intense/) [Making money](https://sms4smile.com/quotes/about/making-money/) [Mandates](https://sms4smile.com/quotes/about/mandates/) [Mean](https://sms4smile.com/quotes/about/mean/) [Milton](https://sms4smile.com/quotes/about/milton/) [Milton Friedman](https://sms4smile.com/quotes/about/milton-friedman/) [Money](https://sms4smile.com/quotes/about/money/) [Profit](https://sms4smile.com/quotes/about/profit/) [Responsibility](https://sms4smile.com/quotes/about/responsibility/) [Responsible](https://sms4smile.com/quotes/about/responsible/) [Sacrifice](https://sms4smile.com/quotes/about/sacrifice/) [Sake](https://sms4smile.com/quotes/about/sake/) [Should](https://sms4smile.com/quotes/about/should/) [Social](https://sms4smile.com/quotes/about/social/) [Social good](https://sms4smile.com/quotes/about/social-good/) [Social responsibility](https://sms4smile.com/quotes/about/social-responsibility/) [Socially Responsible](https://sms4smile.com/quotes/about/socially-responsible-962389/) [Understood](https://sms4smile.com/quotes/about/understood/) ## Related quotes > [As to the meaning of "corporate social responsibility," Friedman and I would agree: If a certain action improves the corporation's bottom line, there's no…](https://sms4smile.com/quotes/robert-reich/as-to-the-meaning-of-corporate-social-responsibility-friedman-and-i/) [Robert Reich](https://sms4smile.com/quotes/author/robert-reich/) > [The curious thing is Americans don't mind individual mandates when they come in the form of payroll taxes to buy mandatory public insurance. 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