Milton Friedman and profit maximization essay
Cup. September anniversary of a seminal moment in the business world: the publication of Milton Friedman's essay in The New York Times Magazine entitled “The Social. Friedman's credo became the standard justification for corporate insensitivity. The Business Roundtable, a leading lobby for major corporations, stated that maximizing profits was the key. Milton Friedman, a renowned economist and Nobel Prize winner, published his essay entitled The Social Responsibility of Business Is To Increase Its Profits. In this seminal work, Friedman argued that the primary responsibility of corporations is to maximize profits for their shareholders, and that any deviation from this goal is: the social responsibility of business is to increase profits. Share the full article. By Milton Friedman. September 13, 1970. New York Times Archives. See the article in its original context. The Friedman Doctrine, also known as Shareholder Theory, states that a corporation's primary responsibility is to maximize shareholder value through the generation of profits, emphasizing economic efficiency as the sole objective. This doctrine, proposed by economist Milton Friedman, prioritizes the interests of shareholders. While Friedman misinterprets the law, business managers are not “employees of the owners of the business,” but of the businesses, he gets the gist right. If shareholders want to “make as much money as possible,” corporate managers, who have a fiduciary responsibility to shareholders, should focus on maximizing. One of the most influential articles on the role of corporations in society is Milton Friedman's 'The Social Responsibility'. of business is to increase profits.” Written, the.