2022-10-31-菲沙研究所-菲沙研究所-ESG_神话与现实-弗里德曼和他的ESG评论家（英）_14页_1mb

Friedman and His ESG Critics

This essay examines Milton Friedman’s 1970 argument, “The Social Responsibility of Business Is to Increase Its Profits,” and the challenges to this view raised by the ESG movement.

Friedman’s Shareholder Capitalism

• Friedman argued that the role of a corporate executive is to maximize shareholder profits while adhering to societal rules.
• He contended that social responsibilities advocated by executives either benefit shareholders or require political processes, not corporate action.
• Executives must conform to legal and ethical norms; complex performance criteria increase managerial discretion to the detriment of shareholders.
• Businesses addressing externalities exceed legal requirements risk undermining capitalism by assuming governmental functions.

Criticisms and ESG Alternatives

• Stakeholder Capitalism: Critics argue that executives should consider interests beyond shareholders, including employees, consumers, communities, and the environment (as in ESG).
• Ethical grounds: Managers have moral obligations to stakeholders that may conflict with shareholder interests.
• Political influence: Large companies' market power can be used to shape policies (lobbying), potentially defending self-interest via political means.
• Agent Problem: A separation of ownership and control gives executives undue power.

Further ESG Arguments:

• Contemporary ESG proponents view environmental protection and social equity as integral stakeholder interests.
• Some argue that ESG practices improve profitability, reducing risk, and increasing returns for investors.

Economics and Market Efficiency

• Friedman’s critics query the ability of executives to determine socially responsible actions without compromising efficiency.
• Some claim inefficient markets or lack of information hinder the optimal integration of ESG factors.

Conclusion

Friedman maintained that businesses should focus on economic performance, with public policy addressing societal problems. Most economists align with his view that market-based solutions suffice, but the ESG movement critiques the system, arguing that corporate culture and operations impact society. The debate continues despite broad support for Friedman’s thesis among economists.