The Friedman Doctrine

The Friedman Doctrine, named after economist Milton Friedman, states that a company's primary responsibility is to maximize its profits for shareholders within the legal and ethical boundaries. In essence, a business should focus on making the most money possible while obeying laws and moral standards. This approach believes that by doing so, companies contribute to economic growth and societal well-being, as profits drive innovation, employment, and investment. However, it also emphasizes that managers should not use company resources for personal or social goals outside profit-making, unless these goals align with legal and ethical business practices.