Business Roundtable Steps Back From Milton Friedman Theory

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Business Roundtable Steps Back From Milton Friedman Theory
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The Business Roundtable previously focused on maximizing shareholder value. Now the CEOs ask companies to remember their obligation to all of society.

The Business Roundtable said Monday that it is changing its statement of “the purpose of a corporation.

” No longer should decisions be based solely on whether they will yield higher profits for shareholders, the group said. Rather, corporate leaders should take into account “all stakeholders”—that is, employees, customers and society writ large.

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