Shareholder Primacy versus finite mindset

Milton Friedman’s 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 mindset and hence 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


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