Central to this discussion is the doctrine of shareholder primacy—the belief that the primary obligation of corporations is to maximize shareholder returns. While this approach dominates ...

As a result, shareholder primacy tries to remove any ambiguity by making managers beholden to a single group – the firm’s shareholders. In addition to imposing legal obligations on directors ...

At the same time, there is a clear winner — the concept of shareholder primacy. The idea, popularized by Nobel laureate Milton Friedman in 1970, is that corporate executives and boards have a ...

This analysis challenges the concept of the longer-term efficiency of “shareholder primacy”—a prevailing theory in corporate governance, which holds that shareholder interests should be prioritized ...

Since the 2008 financial crisis, a growing chorus of advocates and scholars have argued that corporations have a responsibility toward a number of different stakeholders, including their employees.

Bastiaan van der Linden at EDHEC Business School explains a management mindset that won’t be displaced entirely by ESG Shareholder primacy is a management mindset in which strategic business decisions ...

According to Strive's website, the firm's employees "live by a strict commitment to shareholder primacy - an unwavering mandate that the purpose of a for-profit corporation is to maximum long-run ...

Supporters of stakeholder capitalism today believe this priority on all entities should replace shareholder primacy. Investopedia / Michela Buttignol The debate about the role and responsibilities ...

That’s what Milton Friedman said when he argued in favor of shareholder primacy back in 1970: In a free‐enterprise, private‐property system, a corporate executive is an employee of the ...

It took a while, but shareholders are now paying a price for their primacy. Follow @rob_cyran, opens new tab on X (The author is a Reuters Breakingviews columnist. The opinions expressed are his own.) ...