Milton Friedman’s Shareholder Primacy and its relationship with finite mindset

DipsUnplugged

Milton Friedman’shareholder primacy theory requiring every company to give primary focus and attention to direct their attention to safeguard the interests of the shareholders is the primary reason that has given rise to advent of finite minded leaders.

When the Resources i.e. financial metrics with respect to shareholders need to be given primary importance CEO’s often tend to prioritize them at the cost of human resources by means of layoffs.

In such a scenario the environment becomes filled with mistrust when employees are pitted against each other for attainment of short term targets.

Hence Milton Friedman’s theory has been the primary reasons we have more finite minded leaders who care for short term benefits prioritizing profit over people.

Adopted from Simon Sinek’s book The Infinite Game

View original post

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Create your website at WordPress.com
Get started
%d bloggers like this: