Friedman 50 Years Later

The Enduring Wisdom of Milton Friedman

Shareholder value maximization has been extremely successful globally in the way that matters most because, in many cases, maximizing shareholder value is...

Shareholders Don’t Always Want to Maximize Shareholder Value

Oliver Hart, winner of the 2016 Nobel Prize for economics, reflects on how the world has changed since Milton Friedman published his famous essay...

Does a CEO Have a Duty to Lobby?

We need not only more disclosure, but also more work in alerting people in general (and students in particular) about the distortive effects of...

Pursuing Stakeholder Capitalism Is an Impossible Task When Stakeholders Have Different Beliefs

Can companies really attempt to benefit all stakeholders, when stakeholders rarely agree on the best course of action? A new study examines...

What Stakeholder Capitalism Can Learn From Milton Friedman

Instead of ridiculing the Friedman doctrine and proclaiming its death, advocates of stakeholder capitalism and responsible investing, like me, can learn a...

The Illusory Promise of “Stakeholderism”: Why Embracing Stakeholder Governance Would Fail Stakeholders

Stakeholderism—granting corporate leaders discretion to give weight to the interest of all stakeholders—should not be expected to deliver its purported benefits to...

Serving Shareholders Doesn’t Mean Putting Profit Above All Else

The time has come for companies, economists, and society to abandon the argument that the only responsibility of business is to maximize profits. Editor’s note:...

Diversifying Corporate Boards — the Best Way Toward a Balanced Shareholder/Stakeholder System of Corporate Governance

Boards can recognize that their shareholders have needs beyond financial wealth maximization. Making corporate boards representative and diverse works better than co-determination...

Friedman’s Principle, 50 Years Later

In the mid-1980s, Milton Friedman’s view that the only social responsibility of business is to increase its profits became dominant in business...

Latest news

New Study Warns Antitrust Inaction May Lead To Acceptable Collusion for Public Policy Considerations

The modernization of EU antitrust laws muddied the water with regard to the ways that antitrust authorities and courts should handle situations...

Dark Money Dominates Spending by Special Interest Groups and Sways Elections

New research on undisclosed and unlimited political contributions, or dark money, exposes the increasing role that such funds play in U.S. elections.

The “Conspiracy” of Consumer Welfare Theory

Matt Stoller argues there was a conspiracy. It was more of an association with a singular purpose.

Researchers Find Reduced Competition After Pandemic

The chart of the week comes from a new research paper that documents the increase in small business closures during the Covid...

Voters Still Believe Politics is About the Common Good, Not Just Rent-Seeking

Do voters still believe that politics can be a source for common-good policies and not just partisan bickering and rent-seeking? With political...

How to Design Data Protection Laws That Actually Work 

More and more countries are passing data protection laws, yet empirical studies show that these laws rarely deliver on their promises. A...

Are Monopolists or Cartels the True Source of Anticompetitive US Political Power?

Trade associations are often the biggest obstacles to competitive markets, especially when those organizations use their influence to change public policy in...