|
The Folly of Socially-Responsible
The social responsibility of business is to increase its profits.
- Milton Friedman
I may lose some friends this way, but socially-responsible activist investing wastes time and money. Shareholder proposals on corporate social and environmental responsibility matters at annual meetings distract investors, directors, and executives from much more important problems in governance and management. There, I've said it.
In a current blog post, we consider what Milton Friedman and Michael Jensen have to say about this subject, and show how socially-reponsible activism defies economic logic, as well.
|
| You can find other useful resources at the TAI website, including our research on "Effective Activism, on the Cheap", the new guide to executive compensation, bibliography of academic research on the returns to activist investing, and our white paper with the basics on activism. |
