The Best Way To Increase Shareholder Value Is To Stop Focusing On Shareholder Value

The reign of Milton Friedman’s (pictured) notion of maximizing shareholder value comes to an end with the Business Roundtable’s recent Statement on the Purpose of a Corporation. SOUTH CHINA MORNING POST VIA GETTY IMAGES

Almost 200 of America’s most prominent CEOs belonging to the Business Roundtable recently redefined the ultimate mission of corporations, overturning the focus on “maximizing shareholder value” that has reigned supreme for the past 20 years. Originally proposed in 1970, Milton Friedman’s doctrine of shareholder value promised a clear-cut method for…