Theory that the only social responsibility of business is to increase its profits
Portrait of Milton Friedman
The Friedman doctrine, also called shareholder theory, is a normative theory of business ethics advanced by economist Milton Friedman which holds that the social responsibility of business is to increase its profits.[1] This shareholder primacy 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 increase its profits and 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 whom the shareholders appointed explicitly for business purposes decide such matters for them.[2]
The Friedman doctrine has been very influential in the corporate world from the 1980s to the 2000s. However, it has attracted criticism, particularly since the financial crisis of 2007–2008, caused by various financial institutions which engaged in excessive risk for profit maximization, causing the bubble and collapse of the American real estate market that triggered the crisis throughout the wider global economy.[3][4][5]
^ abSmith, H. Jeff (15 July 2003). "The Shareholders vs. Stakeholders Debate". MIT Sloan Management Review (Summer 2003).
^Friedman, Milton (September 13, 1970). "A Friedman Doctrine: The Social Responsibility of Business is to Increase Its Profits". The New York Times Magazine.
^Sorkin, Andrew Ross (2020-09-11). "Has Business Left Milton Friedman Behind?". The New York Times. ISSN 0362-4331. Retrieved 2022-01-11.
^"Opinion | Profits and Social Responsibility: Revisiting Milton Friedman". The New York Times. 2020-10-03. ISSN 0362-4331. Retrieved 2022-01-11.
^Posner, Eric (2019-08-22). "It's Time to Rethink Milton Friedman's 'Shareholder Value' Argument". The University of Chicago Booth School of Business. Retrieved 2022-01-11.
The Friedmandoctrine, also called shareholder theory, is a normative theory of business ethics advanced by economist Milton Friedman which holds that...
corporation ... and his primary responsibility is to them. — Milton Friedman. "A FriedmanDoctrine: The Social Responsibility of Business Is to Increase Its Profits"...
Milton Friedman (/ˈfriːdmən/ ; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize...
paying dividends and/or causing the stock price to increase (i.e. the Friedmandoctrine introduced in 1970); The more specific concept that planned actions...
Bernanke doctrine named after Ben Bernanke Friedmandoctrine named after Milton Friedman Most legal doctrines are named after the cases. This section only...
agency costs. Common examples of this cost include: according to the Friedmandoctrine, the cost borne by shareholders (the principals) when corporate management...
advised by Milton Friedman. Klein connects torture with economic shock therapy. Part 3 covers attempts to apply the shock doctrine without the need for...
portal economics portal Bob Chitester David D. FriedmanFriedmandoctrine Free to Choose Milton Friedman The Machinery of Freedom 1992 edition preface...
York: Palgrave. ISBN 1-4039-7581-7. OCLC 70676637. Friedman, Milton (1970-09-13). "A Friedmandoctrine-- The Social Responsibility of Business Is to Increase...
"tragedy of the commons" to an argument for private ownership. The Friedmandoctrine, which Nicolas Firzli has argued defined the neoliberal era, may lead...
the Claflin Doctrine--New View of the Policy against Perpetuities". Missouri Law Review. 50 (4): 805–839. Retrieved 19 July 2017. Friedman, Lawrence (9...
improvised explosive devices (IED)s. Thomas L. Friedman of the New York Times has referred to the Rumsfeld Doctrine as one of "just enough troops to lose". That...
doi:10.5172/impp.453.10.2-3.146. S2CID 20510519. Friedman, M. (September 13, 1970). "A Friedmandoctrine—; The Social Responsibility Of Business Is to Increase...
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is resembles that of noted economist Milton Friedman, in what has come to be known as the Friedmandoctrine or shareholder theory. In 1956, Lewis Gilbert...
on the institutional environment in which the doctrine appears". Clark Warburton, an early-pre-Friedman-and-Schwartz monetarist who wrote in the 1940s...
Alawite doctrine was exiled with Nusayr and his followers into Syria and Turkey, where the abdal are predicted to reside. Al‐Khaṣībī Friedman, Yaron (2010)...
View of the Cosmos. p. 186. ISBN 9780940985919. OCLC 271862709. Jerome Friedman, Michael Servetus: a case study in total heresy, 1978, p. 134 Owen, A....
as Khidr (Saint George) and Simeon Stylites. Yaron Friedman and many researchers of Alawi doctrine write that the founder of the religion, Ibn Nusayr...
Milton Friedman introduced his shareholder theory of business ethics, known as the Friedmandoctrine, in a 1970 essay for the New York Times. Friedman generally...
or the physical universe, his mind or anything else." According to the doctrine, "one does not have a thetan, he is a thetan." Hubbard referred to the...
the Department of Economics of the University of Chicago under Milton Friedman and Arnold Harberger, or at its affiliate in the economics department at...
directed by her husband Avi Lewis, further increased her profile. The Shock Doctrine (2007), a critical analysis of the history of neoliberal economics, solidified...
including John Locke, David Hume, Irving Fisher and Alfred Marshall. Milton Friedman made a restatement of the theory in 1956 and made it into a cornerstone...
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