★ Dillon Ring ★

Profit, People
& Power

Profit, People
& Power

Shareholder value vs. social responsibility

Press → to begin
Sept 13, 1970, NYT

The Friedman Doctrine

The only social responsibility of business is to increase its profits.

— Milton Friedman

…within the rules of the game.

The whole argument depends on the rules being
written outside the boardroom.

Ramanna (2020): "America ignored an important caveat in Friedman's own dictum."

Carroll's Pyramid

Philanthropic
Ethical
Legal
Economic

Friedman: levels 1–2. The rest is "someone else's money."

Legal ≠ Safe

Slow law, Weak penalties.
Costs land on workers, communities, customers.

"It's legal" is a shield not a defense.

"Stay out of politics."

"Too political"
"Just business"
Climate pledges
Lobbying tax code
DEI initiatives
Anti-union campaigns
ESG reports
Chasing subsidies

Already political... they're just picking which politics counts.

Who Actually pays?

Shareholders

Exit: they can sell at 9:30am
Risk: diversifiable
Voice: loud & organized
VS

Workers & Communities

Exit: stuck in place
Risk: wages, health, home
Voice: often none

Protect the groups with low exit and high exposure.

The "Smart Business" Defense

"It pays in the long run!"

Jensen · Porter & Kramer:
be good because it boosts returns.

Then what about the days exploitation prints more?

★ My Answer ★

Profit can come after the floor.

PROFIT

Labor

safe, paid, not treated as disposable

Honesty

no exploiting trust

Environment

break it, you buy it

Accountability

enforceable!

Enforceable baseline

Shareholder value is a ceiling goal, not a license.

End

Thank you.

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