Past Event

What Milton Friedman Got Right (and Wrong) and Why it Matters

August 6, 2019
8:30 AM - 10:00 AM
Av. Libertador Bernardo O’Higgins 440 Edificio Alameda Auditorio 31 Santiago

In 1970, Milton Friedman published a short article in the New York Times entitled “The Social Responsibility Of Business Is to Increase Its Profits”. Is this argument adequate for our times when society holds business responsible for many social ills, such as climate change? Further, should firms do more than just accept responsibility but also take on the charge to help solve social problems? Bruce Kogut, Professor of Leadership and Ethics at Columbia Business School, will discuss the relevance of Friedman’s paper for today and also the “counter-narrative” that argues for why firms should sometimes assume responsibility for bettering society.

Kogut, Sanford C. Bernstein & Co. Professor of Leadership and Ethics at CBS, teaches the courses Fundamentals of Governance, Business Strategies and Solving Social Problems Governance and Governance and Ethical choices. His highly-cited research has been published in leading journals in economics, management, sociology, and computer science. He received his PhD from the MIT Sloan School of Management and holds an honorary doctorate from the Stockholm School of Economics. Previously, he was on the faculties of the Wharton School of the University of Pennsylvania and INSEAD, and he has been a research fellow and visiting professor at the Rand Corporation, École Polytechnique, Social Science Research Center Berlin, Stockholm School of Economics, and Tsinghua University, among others. Previously, a member of non-profit, academic advisory boards, and for-profit companies in many countries, Bruce Kogut is currently a member of the scientific board to the Institut Polytechnique de Paris. His edited books on Corporate Governance and International Capital Flows (with Peter Cornelius, senior economist at AlpInvest and Carlyle and sponsored by the World Economic Forum) appeared in 2003, and later his book Small Worlds of Corporate Governance was published by MIT Press in 2012.

Here is the Milton Friedman article.