Friedman Doctrine

The Friedman Doctrine, proposed by economist Milton Friedman, argues that a company's primary responsibility is to maximize shareholder value. According to this view, businesses should focus on generating profits for their owners, as long as they operate within the law and ethical norms. Any social or environmental concerns should be secondary and handled by individual choices, not by the corporation itself. Friedman believed that by prioritizing profits, businesses ultimately contribute to societal welfare, as they create jobs, drive innovation, and generate wealth. Critics argue this approach neglects broader social responsibilities.