Milton Friedman's Shareholder Primacy: A Flawed Doctrine Driving Corporate Behavior
Jump to 13:34Don Norman sharply criticizes the prevailing corporate doctrine, famously articulated by economist Milton Friedman, which posits that a company's sole allegiance is to its shareholders. Friedman's theory, now a standard in MBA curricula worldwide, asserts that companies do not owe loyalty to customers, employees, or the communities they operate in. Despite lacking legal standing, this doctrine heavily influences corporate decisions, often leading to behaviors that prioritize immediate financial returns for shareholders over sustainable, long-term viability and broader societal benefits.


