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CEO Lobbying Group to Rethink Putting Shareholders First

The Business Roundtable group—representing some of the most powerful names in the game—has rejected Milton Friedman’s long-held maxim.

The group representing America’s most important companies is rethinking norms in corporate decision-making. The Wall Street Journal reports that the Business Roundtable group is changing its statement of purpose based on Milton Friedman’s long-held theory that all decisions be based solely on whether they will yield profits for shareholders. From this point forward, it will recommend that decisions should take into account “all stakeholders” including employees, customers, and “society writ large.” The new statement will read: “Each of our stakeholders is essential. We commit to deliver value to all of them, for the future success of our companies, our communities, and our country.”