People often
talk about how businesses should have a "social conscience." They mean that
businesses should act in ways that are meant to promote some greater societal good. This quote
is saying that that is a silly notion -- instead, the only reason for a firm to exist is to do
business.
I agree with this statement, at least for publicly traded
companies. If a company issues stock, its only real responsibility is to make money for its
shareholders. Of course, it must obey laws along the way, but its responsibility is to make as
much money as possible.
Privately held firms are different. Their business
is to do whatever their owners want. If the owner wants to use the firm for philanthropic
purposes, that is fine. But fundamentally, the point of a firm is to make money, not to have a
social conscience.
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