An example of Friedman 's position , relative to managers or administrators are not obliged to act on behalf of the company if doing so does not maximize shareholder value , would be:
The use of filters to prevent environmental pollution , should be carried out only if it maximizes shareholder wealth . No matter whether that action benefits or meet the expectations of a small group of activists. In this context, managers or administrators are not responsible for implementing any kind of activities. In fact , if expensive have a responsibility not
implement , if not with them increases shareholder wealth .
In this case , from an efficiency perspective , it would be impossible for managers or administrators , increase shareholder wealth while trying to meet all the needs of society. In any case it would be
responsibility of the government to tax and spend to cover social needs.
Thus it is that when you own a business and this is one who manages it, the best way to satisfy their own interests is to meet the needs of society . If interest groups representing social welfare claim that an item occurs within certain standards of environmental care and safety , then perform them attending these rules is in the best interests of the owner, because otherwise surely customers they prefer the product of any of its competitors.
It is likely that consumers buy for empathy, a product manufactured by an organization that is widely shared and deeply held social values , so that a business always agree them to incorporate these values into their operations and product
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