Social Responsibility Issues

While Friedman's intent was incredibly clear over a question of the social responsibility of business, his assessment contained a single of the notorious "loop holes," which offer a basis for much political discussion (and some profit) from the United States. This loop hole in Friedman's (1982, p. 133) assessment could be the phrase "so lengthy as it stays from the rules in the game." Friedman, of course, was referring to activities falling within a framework defined by the principles of a industry economy, as he interprets these principles, and to activities which conform towards legal and ethical standards from the United States, as he thinks these standards must exist.

The phrase, "so lengthy as it stays during the rules in the game," however, can be and has been interpreted in numerous ways by others. This proposition might be illustrated via a consideration of environmental protection.

Some people believe that the long term conservation from the country's natural resources are of higher significance than are the short term profit making (and career creation) objectives of individual firms. These persons believe that conservation policies ought to legitimately be a component of "the rules in the game." The battles in this interest area had been particularly intense in relation towards opening of some public lands to exploration, mining, and forest operations.

Positive economics has led for the development of the wide number of predictive theory and procedures. In many respects, the positive process to economics led towards creation in the field of econometrics, that is the application of mathematical and statistical methods for the study of economics. The goals of econometrics stands out as the development of valid, reliable, and value free predictive models. As such, it is an outgrowth of sure economics.

eel that the protection on the country's natural environment the air, the water, and also the land should be a part of "the rules of the game." The proponents of environmental protection secured the enactment of essential legislation at all levels of government, which was designed to protect the environment, and which created a significant regulatory authority over firm and industry. There's no doubt surrounding the truth that environmental protection regulations elevated the cost of producing company for numerous firms, and that, in some instances, short term profitability inside the domestic market would be adversely affected by the environmental protection regulations.

England (1982, p. 42) noted that "zero pollution would also entail . . . probably the most extensive commitment of economic resources to pollution manage activities." This impact is societal, as opposed to firm, based. As economics is, essentially, a science of scarcity, the commitment of resources to pollution control indicates that society, during the aggregate, will make sacrifices in other exercising areas or in other factors an improve in pollution control activities could be supported, as an example, by reduced consumption of commercial entertainment (reduction in an exercise area), or it could be supported by a decreased output during the affected industry (reduction in economic efficiency).

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