Which theory of corporate social responsibility prioritizes the interests of shareholders over other stakeholders?

The shareholder theory of Milton Friedman asserts that a corporation's primary responsibility is to its shareholders, emphasizing profit maximization as the ultimate goal. This perspective maintains that by focusing on the financial interests of shareholders, the corporation ultimately benefits society as a whole. Friedman argued that engaging in actions intended to benefit other stakeholders, such as employees or the community, diverts from this primary objective and can be detrimental to the economy.

In this context, the theory inherently prioritizes shareholders' interests over other stakeholders, promoting the idea that the corporation's role is to generate returns for those who invest in it. This creates a clear delineation of priorities, differentiating it from other theories, such as stakeholder theory, which seeks to balance the interests of various groups affected by corporate actions, including employees, customers, and the community.