Milton Friedman has argued that corporations have no responsibility to society beyond that of obeying the law and maximizing profits for shareholders. Individuals may have social responsibilities according to Friedman, but not corporations.When executives make contributions to address social problems in the name of the corporation, they are doing so with other people''s (shareholders'') money. The responsibility of corporate executives is a fiduciary one, to serve as an agent for the corporation''s shareholders, and to uphold shareholders'' trust, which requires executives (...) to maximize the return to their shareholders, who can then, if they choose, contribute their own money to worthy causes. (shrink)

This paper was motivated by what we see as an inconsistency between a 1988 paper by Brennan and Buchanan expressing concern that public choice might erode public confidence in government and previous work by Buchanan, in particular Buchanan. The one advantage we saw with the 1988 paper was that it, all by itself, is all one needs to dismiss MacLean’s depiction of Buchanan as an ideologically rigid extremist. We also found the same inconsistency occurring simultaneously in Buchanan’s writing in 1979. (...) Yet, based on Wagner, we conclude that such inconsistencies may reflect a strength in Buchanan’s scholarship. (shrink)