> Sorry, but thats not how capitalism operates. Modern corporations are created for the benefit of share holders and they operate for only one reason and one reason only i.e. "to maximize" shareholder value [1].
Sure, but we should quote Friedman a bit more completely… “there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.”
The key caveats to maximizing shareholder value are that this maximization happens ‘within the rules of the game’ and when the business ‘engages in open and free competition without deception or fraud.’ A market’s ‘rules of the game,’ so to speak, are set by the government which has the power to enforce those rules.
Part of those rules include what can and cannot be made into a contract, and, in particular, what types of contracts wouldn’t be enforceable because of coercion. If an employee would lose their house because of a business’s decision (and the business has no objective incentive to warn the employee of this potential), I’d argue that most parts of the employer/employee relationship are coercive. A union can mitigate that somewhat by providing a real cost the business for not negotiating in good faith.
In addition, the ‘rules of the game’ are changed by the government, which itself is affected by large market players.
Outside of that: this is a rather one-sided discussion. I’ve given rather full responses and you’ve provided nothing other than ‘no you’re wrong, here’s a partial quote,’ and ‘what about this ridiculous hypothetical?’ Do you have any rebuttal to what I said, or is the ‘personally, I’d rather protect the employees at the risk of shareholders,’ the extent of what you can argue against?
Sure, but we should quote Friedman a bit more completely… “there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.”
The key caveats to maximizing shareholder value are that this maximization happens ‘within the rules of the game’ and when the business ‘engages in open and free competition without deception or fraud.’ A market’s ‘rules of the game,’ so to speak, are set by the government which has the power to enforce those rules.
Part of those rules include what can and cannot be made into a contract, and, in particular, what types of contracts wouldn’t be enforceable because of coercion. If an employee would lose their house because of a business’s decision (and the business has no objective incentive to warn the employee of this potential), I’d argue that most parts of the employer/employee relationship are coercive. A union can mitigate that somewhat by providing a real cost the business for not negotiating in good faith.
In addition, the ‘rules of the game’ are changed by the government, which itself is affected by large market players.
Outside of that: this is a rather one-sided discussion. I’ve given rather full responses and you’ve provided nothing other than ‘no you’re wrong, here’s a partial quote,’ and ‘what about this ridiculous hypothetical?’ Do you have any rebuttal to what I said, or is the ‘personally, I’d rather protect the employees at the risk of shareholders,’ the extent of what you can argue against?