“The goal of the managers of multinational corporations (MNCs) is to maximize shareholder value.”
This idea originates from the well-known article by Prof. Milton Friedman, the father of “Friedman Doctrine”, a.k.a., “Shareholder Capitalism”, about the main responsibility of corporate managers – Friedman pdf is attached.
On the other hand, in recent years, another management philosophy is emerging called “Stakeholder Capitalism”, which is closely related to Responsible Leadership, Corporate Social Responsibility, and Sustainable Business” discussions. It maintains that shareholder value is generally maximized when management effectively incorporates other stakeholders’ interest including customers, employees, suppliers, communities, and other environmental and social considerations that enhance overall brand value. In August 2019 the Business Roundtable codified a clarification of this goal stating that the advancement of these other stakeholder interest needed to be a direct accountability of the corporation and that stockholder interest and other stakeholder interests can be congruent. The Business Roundtable release is also attached.
Please read the attached articles and arguments and then, by taking a side between shareholder capitalism and stakeholder capitalism, prepare one paragraph critical summary and post a creative and stimulating question to the class
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