MILTON FRIEDMAN'S PRAGMATIC AND INCREMENTAL LIBERTARIANISM

MILTON FRIEDMAN'S PRAGMATIC AND INCREMENTAL LIBERTARIANISM: "According to Friedman, if a corporation makes a donation to charity, it is actually the managers who are making donations of assets that belong to the shareholders. They would be spending others' money unless those shareholders express their desire to make such a donation. He explains that managers should not substitute their judgment for the judgment of the shareholders. Friedman maintains that another reason against managers spending funds for social causes is that insofar as those actions increase consumer prices, he is effectively spending customers' money. Similarly, when such actions lower the wages of employees, he is disbursing their money."

Tags: corporate-fundraising, corporate philanthropy