Friedman 50 years later

A Challenge for Stakeholder Capitalism: Solving the Paradoxes of Voting

If corporations are to maximize shareholder welfare, managers need to discover what shareholders value; political theory shows how difficult this can be.

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

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

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

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

Which Problems Should Companies Try to Solve?

It is true that capitalism needs to be inclusive in its benefits, but 50 years on, Friedman’s shareholder primacy remains the right...

“50 Years Later, It’s Time to Reassess”: Raghuram Rajan on Milton Friedman and Maximizing Shareholder Value

The biggest problem with shareholder value maximization is that it completely turns a tin ear to politics. The alternative is to maximize...

It Is Time to Move on From Friedman’s View of the Corporation

The anti-CSR position defended by Friedman would be acceptable only under conditions that have never been met by any real-world economy. Furthermore,...

Corporations Are Already Plenty Powerful. Stakeholder Capitalism Could Make Them More So

Encouraging corporations to further step into the role of governments and civil society groups by becoming more "socially focused" risks greater depreciation...

The Real Effects of Environmental Activist Investing

A new study examines the efficacy of climate-focused investor engagements initiated by the New York City Pension System. Its findings support the...

For Whom Corporate Leaders Bargained: What the Past Can Teach Us About the Questionable Promise of Implementing Stakeholder Capitalism Today

The debate about stakeholder capitalism should seek to learn from our experience with constituency statutes, which authorized corporate leaders to take into...

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...

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Opening the Black Box: The Hidden Costs of Data-Driven Mergers in Health Care

Vertical data-driven mergers between health insurers and drug suppliers may facilitate health insurers’ efforts to discriminate against vulnerable populations, leaving them without...

Most Americans Consider Themselves Middle-Class. But Are They?

There are different ways of determining who should be considered middle-class. But there is one thing they have in common: all reveal...

Barriers to Entry as Another Source of Top Income Inequality

A new book, The Power of Creative Destruction, explores how lobbying contributes to the increase in the top 1 percent’s share of...

ProMarket Reader Survey: We Want Your Feedback

As ProMarket enters its sixth year of operation, we would like to understand what you, our readers, like about it and what...

What Stakeholder Capitalism Can Learn From Jensen and Meckling

Jensen and Meckling’s 1976 article is an academic classic, but heavily criticized by stakeholder capitalists for arguing that corporate structures should be...