There are two perspectives regarding to whom organizations are socially responsible the shareholder model and the stakeholder model.
According to the late Nobel Prize-winning economist Milton Friedman , the only social responsibility that organizations have is to satisfy their owners, that is, company shareholders.
This view-called the shareholder model-holds that the only social responsibility that businesses have is to maximize profits.
By maximizing profit, the firm maximizes shareholder wealth and satisfaction.
More specifically, as profits rise, the company stock owned by shareholders generally increases in value.