A Quote by Milton Friedman
So the question is, do corporate executives, provided they stay within the law, have responsibilities in their business activities other than to make as much money for their stockholders as possible? And my answer to that is, no they do not.
Related Quotes
Few trends could so thoroughly undermine the very foundations of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible.
Henry Ford has several times sneered at unproductive stockholders.... Well, now. Let's see. Who made Henry Ford's own automobile company possible? The stockholders who originally advanced money to him. Who makes it possible for you and me to be carried to and from business by train or street car? Stockholders.... Who made our vast telephone and telegraph service possible? Stockholders.... Were stockholders all over the country to withdraw their capital from the enterprises in which they are invested, there would be a panic ... on a scale never before known.
Part of America's industrial problems is the aim of its corporate managers. Most American executives think they are in the business to make money, rather than products or service. The Japanese corporate credo, on the other hand, is that a company should become the world's most efficient provider of whatever product and service it offers. Once it becomes the world leader and continues to offer good products, profits follow.
Our laws demand that a corporation have a fiduciary responsibility with shareholders to maximize profits. They are legally required to make as much money as possible, any way possible within 'the law.'
It's not a question of arriving and putting in a whole new administration, but instead, arriving and "compacting" things as much as possible, reducing management layers. We want as few management layers as possible, so that executives are very close to the operations. We also don't believe in having big corporate infrastructures.
In Montana, no one, including out-of-state corporate executives, has been excluded from spending money - or 'speaking' - in our elections. Any individual can contribute. All we require is that they use their own money, not corporate money that belongs to shareholders, and that they disclose who they are.
First, this law - the National Defense Education Act - ended years and years of debate about one controversial question: 'Shall the Federal Government, with all its massive resources, get directly involved in aiding American education?' The answer this law gave was a loud 'Yes!' - and thus we paved the way for a new era of support for education in America. This law, in fact, helped make possible more than 50 new education laws passed in my administration.
I never buy anything unless I can fill out on a piece of paper my reasons. I may be wrong, but I would know the answer to that ...I'm paying $32 billion today for the Coca Cola Company because... If you can't answer that question, you shouldn't buy it. If you can answer that question, and you do it a few times, you'll make a lot of money.
The first law of the market is to make the largest possible profit from other people's labor or go out of business. Profitability rather than human need is the determining condition of private investment.
The great power in America is the corporations - we`re a corporate country. We`re run by a CEO and the stockholders have very little to say on how the corporation is run. Fine, the board of directors run it and the stockholders can just be disgruntled, but who gives a damn?
The question is always the answer, provided you want the answer badly enough.
Corporate executives need to re-frame their responsibilities to include the interests of all the stakeholders in society at large; not just shareholders, but also employees, the citizens of our communities, and those who care about the environment.
Once you establish what activities your company needs to do, the next question is, 'How do these activities get accomplished?' i.e. what resources do I need to make the activities happen?
In the frequently-asked-question category, the question I get asked almost as much as 'What's the worst thing you've ever eaten?' is 'What's the best pair of pants to travel in, work in, trek in, and use on the road for the most activities possible?'
As a creative individual, I really go out of my way to avoid the corporate scene in terms of songwriting. If the first question is how much money is it going to make, I'm going to be in trouble anyway.
When business leaders ask me what they can do for Indiana, I always reply: 'Make money. Go make money. That's the first act of corporate citizenship. If you do that, you'll have to hire someone else, and you'll have enough profit to help one of those non-profits we're so proud of.'
Related Authors
Adam Smith Quotes
Scottish
Economist
Alan Greenspan Quotes
American
Economist
Benjamin Graham Quotes
American
Economist
Friedrich August von Hayek Quotes
Austrian
Economist
John Kenneth Galbraith Quotes
American
Economist
John Maynard Keynes Quotes
English
Economist
Joseph Stiglitz Quotes
American
Economist
Ludwig von Mises Quotes
Austrian
Economist
Muhammad Yunus Quotes
Bangladeshi
Economist
Murray Rothbard Quotes
American
Economist
Paul Craig Roberts Quotes
American
Economist
Paul Krugman Quotes
American
Economist
Richard Thaler Quotes
American
Economist
Robert Reich Quotes
American
Economist
Thomas Sowell Quotes
American
Economist
Walter E. Williams Quotes
American
Economist