SHAREHOLDER PRIMACY V. STAKEHOLDER ORIENTATION SHAREHOLDER PRIMACY ORIENTATION In making decisions, a share-issuing corporation must have a single : to make as much money as possible while conforming to the basic Lof the society, both those embodied in and those embodied in A business has a to its shareholders to use its resources in open and competition to its within the rules of the which is to say within the law and without force or fraud (Source: Friedman, M. 1970 "The Social Responsibility of Business is to Increase its Profits," New York Times Magazine: September 13.) STAKEHOLDER ORIENTATION are Those with a stakeholder orientation contend that a corporation has responsibilities to all of the corporation's stakeholders, defined as those who by the firm's activities, such as shareholders, the communities) in which the company does business, broader the and suppliers The core reason those with a stakeholder orientation believe companies have to as a whole is because companies exert great that profoundly people's lives. this great The debate between those with a shareholder primacy orientation and those with a stakeholder orientation is not management has responsibilities beyond maximizing profits. Both shareholder primacy advocates and stakeholder advocates agree that management does have such responsibilities. The between the two camps is about the and of those responsibilities. (Source: S. Scalet, "Markets, Ethics, and Business Ethics" 2018.) BUSINESS ROUNDTABLE PRESS RELEASE ON STATEMENT ISSUED 8/19/2019