What would Milton Friedman say about Wal-Marts monumental efforts to aid Katrina victims?
Jensen Comment: Nobel Prize Economist Milton Friedman years ago advised against benevolence of corporations and goals of being social responsible beyond strict adherence to the laws of the land. He argued that social accountability beyond adherence to law was not mission of private enterprise and not generally in the best interest of investors. That of course in no way blocks corporate employees from making personal sacrifices as long as they do not use significant amounts of corporate resources in the process. Although I’m a strong believer in the brilliance of Milton Friedman, I must admit that this is one area where I disagree with him. Businesses control such a vast amount of the wealth and resources of the nation that I think it is imperative for them to have societal goals beyond just that of making profits. And I think corporate responsibility is often just plain good business in the best long-term interests of the companies and industries. But there are dangers in becoming over
