11. The social responsibility of business

There are 2 points of view on the social responsibility. Friedman does not consider the possibility that stockholders might prefer to receive lower dividends but live in a society with less pollution or less unemployment and fewer social problems. For example The executives should not make expenditures on reducing pollution beyond the amount that is required by law .To do so is to be guilty of spending the stockholders' (or the customers' or the employees') money. According to thу alternative approach, business managers have responsibilities to all the groups of people. These will include suppliers, customers, employees, and people. A will not, for example, pollute the area around its factories, or close down a factory employing several hundred people in order to make small financial savings.

12. Ethics and the law

The notion of'social responsibility', means that a business must conform to the basic rules of society. Firms shouldn`t use bribing corrupt foreign officials in order to win.firms should do their own expensive research and developmentrather than using industrial espionage. Spending money on lobbying, i.e. trying to persuade politicians to pass laws favourable to your particular industry also doesn`t conform to the basic rules of society.Also the techniques of'creative accounting' to hide big variations in profit figures from year to year shouldn`t occur

13. Two views of the role of government

Some people argue that governments have too much power, that they interfere with 'market forces', and that too much regulation is bad for business.other people think some tasks should be undertaken or regulated by the government. People who approve of government regulation usually don`t have enough money to provide these services for themselves.In such a way government provides social guarantees. Others think that all business activities and transactions are voluntary, and nobody should use force.They disapprove of the necessity of doctors (physicians) and dentists requiring a government-controlled permit or a licence before they can go into business, and they regret that doctors are not free to choose which drugs or medicines to prescribe, but must obey laws and restrictions that are sometimes unique to the USA.

They believe that workers should be free to work any number of hours they agree with their employer, without restrictions imposed by the government.

14. Goverment and industry

Government play important role in regulation of industry. For example department of trade tries to ensure that (a) important sectors of industry are able to benefit from the right technologies, and (b) that markets are open and competitive Government is ensuring that mergers and takeovers do not prevent competition among firms.govermnment help should be based on what industry asks for.

The department oа trade is the most important area of activity is providing analyses of overseas(foreign)markets, especially for small and medium sized companies wanting to export goods or services.the department Inside the country is providing detailed economic and political information about markets and particular market sectors in a different country;abroad there are commercial officers working in embassies, who are able to assist in making contact with local agents.