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Friedman introduced the theory in a 1970 essay for The New York Times titled "A Friedman Doctrine: The Social Responsibility of Business is to Increase Its Profits". [2] In it, he argued that a company has no social responsibility to the public or society; its only responsibility is to its shareholders. [2]
Friedman was a strong advocate of property rights and free markets, and perhaps would have supported the notion of a market for shareholder votes. Robert Charles Clark , Harvard University Professor of Law, wrote a 1979 article titled Vote Buying and Corporate Law , [ 7 ] in which he analyzes the benefits and dangers of vote buying in general.
From such Friedman rejects testing a theory by the realism of its assumptions. Rather simplicity and fruitfulness incline toward such assumptions and postulates as utility maximization , profit maximization , and ideal types —not merely to describe (which may be beside the point) but to predict economic behavior and to provide an engine of ...
(Bloomberg Opinion) -- My Bloomberg Opinion colleague Joe Nocera is a onetime believer in Milton Friedman’s doctrine who has changed his mind. He explains why here.Fifty years ago this month ...
"The social responsibility of the firm is to increase profits," Milton Friedman argued in his famous 1970 essay, a canonical account of shareholder primacy. This view is usually contrasted with ...
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Shareholder primacy is a theory in corporate governance holding that shareholder interests should be assigned first priority relative to all other stakeholders. A shareholder primacy approach often gives shareholders power to intercede directly and frequently in corporate decision-making, through such means as unilateral shareholder power to amend corporate charters, shareholder referendums on ...
Friedman says that this is the only true solution to the balance of trade 'problem'. v. Fiscal Policy Friedman argues against the continual government spending justified to "balance the wheel" and help the economy to continue to grow. On the contrary, federal government expenditures make the economy less, not more stable.