Should the primary objective of management be to increase the wealth of shareholders and owners?

| May 20, 2014

In the 1970s Milton Friedman argued that the sole purpose of business was to maximise profits based on the assumption that such action would benefit society through increased employment. Since this time the debate surrounding the degrees to which today’s organisations should be socially responsible has been the source of much research.

Should the primary objective of management be to increase the wealth of shareholders and owners?

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