How does Milton Friedman theory contradict business ethics?

Milton Friedman's theory of shareholder primacy argues that the sole responsibility of a business is to maximize profits for its shareholders. This contradicts business ethics, which emphasizes the importance of considering the impact of business decisions on all stakeholders, including employees, customers, suppliers, and the community.

Friedman's theory prioritizes short-term financial gains over long-term sustainability and social responsibility. It can lead to unethical behavior, such as cutting corners on product safety or exploiting workers to increase profits. Additionally, it can contribute to income inequality and environmental degradation.

Business ethics, on the other hand, promotes values such as honesty, integrity, fairness, and respect for all stakeholders. It encourages businesses to act in a socially responsible manner, considering the impact of their actions on society and the environment.

Overall, Friedman's theory contradicts business ethics by prioritizing profits over ethical considerations and social responsibility. It fails to recognize the importance of ethical behavior in building trust and long-term relationships with stakeholders.