Final Essay

Any firm’s objective is to obtain profits so that it could survive in the market as well as attain maximum shares in the long run. It is up to the firms to decide whether to obtain these profits ethically or by breaking the rules/immorally. As it is written by Friedman in one of his books that “every coin has two sides” (Friedman, 1962:22), which means that a firm could either cause any harm or would it cause any good to the economy while pertaining profits. Even the topic of the essay written by Friedman is trying to tell us that in a free economy all the firms should do is to follow their corporate social responsibility, and never give up to make profits, but is should do so by following the rules of the game or by acting ethically. Corporate Social Responsibility means that how a company addresses and manages its environmental, social, corporate governance and economic impacts and also how such impacts may affect the company’s stakeholders (Noked, 2013). Do the firms have the right to misuse the resources as well as

But this does not mean that, the firm can use as many resources as it wants, although not all raw materials used by a firm are replenishable, but it should give some time to the nature to restore its lost natural resource and think about sustainable development. For example: if a furniture making firm keeps on lumbering wood without giving time for the forest to replenish the wood, within a few days, there will be no wood left to cut. If this is the case, our future generations will not be able to enjoy these natural resources. If there is no efficient use of natural resources, a market failure will be caused. A market failure usually causes when there is inefficiency, misallocation of resources and also when firms don’t give importance to their social responsibility and are only interested in making