The case for revisiting ethics in the dismal science

Just making profit isn't enough

Economy sea
(Image credit: (iStock))

The ethical business gets a bad rap in economics. While in the real world, people flock to Tom's Shoes for its social mission, in economics, the company's ethics are found in its profit margin.

I blame Milton Friedman's "The Social Responsibility of Business is to Increase its Profits." Though more nuanced than the title suggests, Friedman's article is what got "greed is good" started. In his conclusion, Friedman says that a business' only social responsibility is "to use its resources and engage in activities designed to increase its profits." It's a compellingly simple idea, but it rests on one fatal assumption: that economics can understand wellbeing.

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Adam Gurri works in digital advertising and has an MA in economics from George Mason University. He writes on subjects ranging from philosophy, ethics, and rhetoric to technology, social science, and innovation. His present research focuses on the ethics of business and work, from the perspective of virtue and human flourishing.