Friedman 50 Years Later

Does a CEO Have a Duty to Lobby?

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

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

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

What Stakeholder Capitalism Can Learn From Milton Friedman

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

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

Lucian Bebchuk, Roberto Tallarita:  Stakeholderism—granting corporate leaders discretion to give weight to the interest of all stakeholders—should not be expected to deliver...

Serving Shareholders Doesn’t Mean Putting Profit Above All Else

Oliver Hart, Luigi Zingales: The time has come for companies, economists, and society to abandon the argument that the only responsibility of business is...

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

John C. Coffee Jr.: Boards can recognize that their shareholders have needs beyond financial wealth maximization. Making corporate boards representative and diverse...

Friedman’s Principle, 50 Years Later

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

Latest news

The ACCC’s News Media Bargaining Code: Experimenting with “Decentralized Regulation” of Dominant Digital Platforms

The Australian Competition and Consumer Commission recently proposed a mandatory bargaining code to govern negotiations between digital platforms like Google and Facebook...

Market Forces Already Address ESG Issues and the Issues Raised by Stakeholder Capitalism

Eugene Fama: When do market forces push firms toward stakeholder goals, rather than just shareholder goals? When do market forces push firms...

Capitalisn’t Is Back: Can Economists and Journalists Work Together to Improve Capitalism?

Is capitalism the engine of prosperity, or is it the engine of destruction? On this podcast, we talk about the ways capitalism...

Missing in Today’s Shareholder Value Maximization Credo: The Shareholders

Luca Enriques: Today’s corporate world is very different from the one Milton Friedman wrote in. In a world where the question of...

Australia’s News Media and Digital Platforms Bargaining Code is Great Politics But Questionable Economics

If the Australian government wants to subsidize high-quality journalism then it should, well, subsidize high-quality journalism. The new proposed ACCC code would...

Which Problems Should Companies Try to Solve?

Sanjai Bhagat, R. Glenn Hubbard: It is true that capitalism needs to be inclusive in its benefits, but 50 years on, Friedman’s...

Bethany McLean’s Weekend Reading List: Wirecard, Covid-Overwhelmed Hospitals, and Plastic

Corruption, lobbying, corporate malfeasance, and frauds: a weekly unconventional selection of must-read articles by investigative journalist Bethany McLean.