Revision with unchanged content. ?The business of business is business,? said Milton Friedman more than 35 years ago leading to a fervent debate on the controversial issue of Corporate Social Responsibility. Research has since mostly focused on trying to prove Friedman wrong by studying the relation between Corporate Social Perfor?mance and Financial Performance. The results of this line of research are not conclusive. The analysis offered in this book helps to answer the following questions: Where has this research taken us so far? What are the points the literature has missed? What is the role of market competition in the social performance of firms? Why Milton Friedman urged for free and open competition? And finally, should really Corporate Social Responsibility advocates consider Friedman an enemy? The book is mainly addressed to re?searchers in Corporate Social Performance, economists, and business scholars. Policy makers will also find interesting ideas and insights.