The Character of the Corporation: ESG Faces Tests of Staying Power, Especially With the Ghost of Milton Friedman in the Wings

Will a potential economic downturn, or the ghost of Milton Friedman, dampen the social-purpose movement?  

For more than 30 years, the accepted religion of corporate boards, investors, economists and the courts have held that the foremost obligation of directors is to take actions that make money for the owners of company stock. Directors who took steps to benefit other “stakeholders” — including workers, community, customers and suppliers — at the expense of the shareholder risked being in breach of their fiduciary duties.

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