The Friedman Doctrine, Revisited.

Reconciling Milton Friedman with corporate social responsibility

In September 1970, The New York Times Magazine published an op-ed by economist Milton Friedman entitled “A Friedman doctrine — The Social Responsibility Of Business Is to Increase Its Profits.“ The article sowed the seeds of neoliberalism, the dominant theory driving corporate decision making and economic policy over the past fifty years. The Friedman doctrine, also dubbed the shareholder theory, has led to disastrous environmental and social consequences: climate change, rising inequality, and social media’s degradation of democracy to name a few.

History almost played out differently. Months earlier in February of that very year, Ralph Nader was advocating for corporate responsibility, launching the Campaign to Make General Motors Responsible. The campaign advocated for three reforms within GM: an expansion of the board to include representatives of the public, a resolution that the company undertake no business activity that “is detrimental to the health, safety, or welfare of the citizens of the United States”, and a shareholder’s committee for social responsibility.

Friedman’s op-ed was a direct response to Nadar and his colleagues’ efforts to make corporations more socially responsible. In the piece, Friedman makes a compelling case that the sole responsibility of…