How Advocates of ‘Corporate Social Responsibility’ Distort Shareholder Power

BlackRock CEO Larry Fink takes part in the Yahoo Finance All Markets Summit in New York in 2017. (Lucas Jackson/Reuters)
By pressuring companies to put ‘sustainability’ before profit, they hurt pensioners, small investors, and all those who depend on a robust economy.

NRPLUS MEMBER ARTICLE M any years ago now, Milton Friedman explained something that should never have needed explaining, when, writing for the New York Times Magazine, he reminded his readers what —and whom — a company is meant to be for:

In a free-enterprise, private-property system, a corporate executive is an employee of the owners of the business. He has direct responsibility to his employers. That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to [the] basic rules of . . . society, both those embodied in law and those embodied

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