Idea 11 - Corporate Social Responsibility Economist Milton Friedman and “The Economist” news magazine are only two of the parties who have taken a dim view of 'corporate social responsibility' (CSR). Friedman said in 1970 that the social responsibility of business was to increase its profits. The Economist called it woolly and dangerous thinking and published a two-by-two matrix to explain what that meant. Yet even companies that agree may eventually have to come to terms with it. The Economist plotted CSR's effect on profits against its effect on social welfare. If CSR raised social welfare while reducing profits, it was nothing but 'borrowed virtue', the magazine welfare, it was pernicious and if it reduced both, it was nothing short of delusional. If, however, CSR produced a win-win increase in social welfare and profits at the same time, well, that wasn't CSR - it was simply good management. ...