People often talk about how businesses should have a
"social conscience." They mean that businesses should act in ways that are meant to
promote some greater societal good. This quote is saying that that is a silly notion --
instead, the only reason for a firm to exist is to do
business.
I agree with this statement, at least for
publicly traded companies. If a company issues stock, its only real responsibility is
to make money for its shareholders. Of course, it must obey laws along the way, but its
responsibility is to make as much money as
possible.
Privately held firms are different. Their
business is to do whatever their owners want. If the owner wants to use the firm for
philanthropic purposes, that is fine. But fundamentally, the point of a firm is to make
money, not to have a social conscience.
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