Not A Fad, CEO Activism Is Vital [Forbes]
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Source: Forbes
Not A Fad, CEO Activism Is Vital In today’s fragmented world, should a CEO be an activist in critical areas of social and moral responsibility? In 1949, Dean Donald David of Harvard’s business school asked that question and advocated that business leaders adopt social initiatives beyond their traditional economic scope. In response, most executives viewed such responsibilities as voluntary. Some feared their crusading would spark liability dangers. And in 1970, influential economist Milton Friedman postulated that the sole purpose of management was to maximize enterprise value, leaving shareholders to pursue their social objectives with the funds generated by their investment. Nearly fifty years later, CEO activism – a relatively new term – is on the rise and the debate over assuming such responsibilities has intensified. This time, however, employees, consumers and other stakeholders are leading the way in promoting and supporting decisive actions by CEOs that transcend traditional p
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