Rethinking the Firm: Finding the Space for Ethics in Innovation

Fifty-two years ago, Milton Friedman [1] proclaimed that the 'Social Responsibility of Business is to Increase its Profits.' The corporate executive, he said, owed one thing to one group: profit to his 'employers,' the shareholders of the firm. And with this rallying cry, he summoned forth a near 30-year movement (involving scholars, regulators, political parties, and others) to force the American corporation to conform to his vision, by doing everything from increasing shareholder control of the firm to linking CEO compensation with short-term share prices [2]. © 1982-2012 IEEE.