The late economist Milton Friedman was known for his strong belief that companies have one simple duty: to maximize profits for their owners/stockholders. This view of company responsibility is known as:

Question

Kade Crane

Business

7 August, 00:37

The late economist Milton Friedman was known for his strong belief that companies have one simple duty: to maximize profits for their owners/stockholders. This view of company responsibility is known as:

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Answers (1)

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Gilbert · Answer 1

To maximize the profit of their shareholders is the correct option.

Explanation:

The Friedman doctrine is a theory of business ethics. It was provided by Milton Friedman. According to the theory, the shareholders are the engine of the organization and the company is socially responsible for them. Hence the firm's goal should be to maximize the returns to shareholders. He argued that the shareholders can themselves decide the social initiatives to take part in, instead of having an executive to decide it for them.