Friedman doctrine – Wikipedia

The Friedman Doctrine, or Shareholder Theory, is a normative theory of business ethics advanced by economist Milton Friedman which holds that a firm’s main responsibility is to its shareholders.[1] This approach views shareholders as the economic engine of the organization and the only group to which the firm is socially responsible. As such, the goal of the firm is to maximize returns to shareholders.[1] Friedman argues that the shareholders can then decide for themselves what social initiatives to take part in, rather than have an executive the shareholders appointed explicitly for business purposes decide for them.[2]

Overview Edit

Friedman introduced the theory in a 1970 essay for The New York Times.
— Read on en.m.wikipedia.org/wiki/Friedman_doctrine