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In fact, corporate social responsibility even covers the topic of corporate governance since governance failures as observed at companies like Enron do not only hurt a company’s shareholders but to a large extent also most of a company’s stakeholders – which in the end often make up a considerable part of society.

Milton Friedman’s (in-)famous 1970 article “The social responsibility of business is to increase its profits” will serve to represent the libertarian view which assumes great credibility to concepts like ‘Agency Theory’ and the ‘Invisible Hand’.

However, this mutable conceptualization of trauma and its aftermath have considerable implications for counseling practice.

With the recently released fifth edition of the Nearly 80% of clients seen in community mental health clinics have experienced at least one incident of trauma during their lifetime, representing roughly five out of every six clients (Breslau & Kessler, 2001).

Without even rejecting his employing the concept of Agency Theory, without even challenging his parsimonious understanding of shareholder interests which assumes that profits are the shareholders’ sole objective, it becomes obvious that Friedman’s argument features a major deficiency.

If executives are the shareholders’ agents and are supposed to act in their employers best interests, executives should consider the owners’ social responsibilities in each and every decision they make, even if these are not explicitly articulated.

After elucidating Friedman’s ‘classical’ liberalist approach, which in itself makes perfect sense, this paper will point towards the deficiencies of Friedman’s argument.

The Council for Accreditation of Counseling and Related Educational Programs (CACREP) reiterates across both master’s and doctoral training levels the importance of understanding the implications of trauma theory, research and practice in counselor preparation and ultimately practice.Trauma survivors are a unique population of clients that represent nearly 80% of clients at mental health clinics and require specialized knowledge on behalf of counselors.Researchers and trauma theorists agree that, with the exception of dissociative identity disorder, no other diagnostic condition in the history of the ) has created more controversy with respect to the boundaries of the condition, diagnostic criteria, central assumptions and clinical utility than post-traumatic stress disorder.This consideration will then serve as a foundation for the attempt of developing a framework of corporate social responsibility which goes beyond increasing profits only.Friedman commences his article by accusing those discussing about corporate social responsibility of “analytical looseness and lack of rigor” and claims that as a whole “business […] cannot be said to have responsibilities” (Friedman, 1970/1993, p. Thus, in an attempt toward clarity in this discussion he narrows down the definition of business to corporations as artificial entities in general and their executive employees in particular.




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