Shareholders vs. Stakeholders

<p>Many are praising a recent Business Roundtable announcement that corporations should serve stakeholders as well as shareholders. On the surface, this may seem like a historic reversal of the status quo that has held since Milton Friedman's famous &quot;shareholder primacy&quot; theory was put forward in the 70s. But it's not that simple.</p> <p>On this episode, Kate and Luigi layout the history of this theory, revealing that it's really been around for as long as we've been asking the most fundamental question in business: what is the purpose of a corporation? They explore that question, and interrogate the possible underlying motives behind the Business Roundtable's decision.</p>