Shareholder Approach
A management philosophy, associated with Milton Friedman, that argues a business's primary duty is to maximise financial...
Real World
In the 1980s, GE under Jack Welch ruthlessly cut divisions that weren't ranked first or second in their market, prioritising shareholder returns above all else — a textbook Friedman approach.
Exam Focus
Contrast shareholder approach with stakeholder approach in 'discuss' questions; examiners reward awareness of the tension between profit and wider responsibilities.
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