The Trump administration’s stance on diversity, equity and inclusion (DEI) efforts has led to many companies retreating from their commitments to these initiatives. Despite a prominent group of CEOs saying six years ago that making profits was not the only part of their business, but rather serving employees, customers, and protecting the environment.
Milton Friedman, a Nobel laureate economist, argued in 1970 that corporate social responsibility was misguided. He believed that businesses should focus on maximizing profits, abide by government rules and regulations, and sometimes make executive speeches to appear socially responsible. However, he maintained that true corporate social responsibility was unnecessary and would lead the US towards socialism.
Ralph Nader, who spearheaded a shareholder campaign in 1970 to get General Motors to produce safer cars, less polluting cars, and more fuel-efficient cars, says that proxy campaigns can only go so far in driving change. He believes most corporate executives are pragmatists who understand that diversity and efficiency are in their own interest.
The author of the Strategies column notes that they invest in companies regardless of personal opinions on politics or practices. The columnist will take a break but plans to return with an updated analysis of corporate America’s efforts on DEI initiatives by spring.
Source: https://www.nytimes.com/2025/02/21/business/profits-dei-milton-friedman.html