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Milton Friedman was a key figure in the world of economics, particularly known for his strong stance on the role of businesses in society. His viewpoint, often referred to as the "Friedman's Doctrine," asserts that the primary responsibility of a business is to maximize profits for its shareholders. According to Friedman, as long as a company operates within the boundaries of law and ethical norms, it fulfills its social responsibilities just by focusing on increasing shareholder value.
Friedman's perspective stems from his belief in a free-market economy, where businesses contribute to society by enhancing economic efficiency. He argued that diverting focus to other social responsibilities might disrupt this efficiency, potentially harming economic growth.
However, Friedman's theory has sparked debates since it tends to limit the scope of corporate responsibility to just financials, ignoring broader societal impacts. This narrow focus brings up questions about how businesses should act regarding environmental issues or social inequality, challenges prevalent in today's world.

Business ethics is an integral part of modern corporate governance and deals with moral principles and guidelines that dictate appropriate conduct in a business setting. It emphasizes companies acting responsibly and ethically, beyond just striving for profit.
In recent times, many businesses have started acknowledging their role in wider social and environmental contexts by incorporating ethical considerations in decision-making. This can include efforts to reduce carbon footprints, fair labor practices, and supporting community initiatives.
Adopting such ethical practices can lead to increased trust and loyalty among consumers, thereby indirectly benefiting shareholders over time. However, it often requires balancing multiple stakeholders' interests rather than focusing solely on immediate financial returns.
Business ethics encourages leaders and companies to ask not just whether actions are legal, but whether they are right, promoting a culture of integrity and accountability throughout their operations.

Shareholder theory is closely linked to Milton Friedman's ideology and focuses on the idea that the primary duty of a company is to its shareholders. This theory posits that businesses exist mainly to serve the interests of their owners, namely the shareholders, by maximizing their investment returns.
Proponents argue that by concentrating on increasing profits and shareholder value, companies inherently benefit society due to the creation of wealth and the stimulation of economic growth. Nonetheless, critics point out that this perspective may lead to neglecting important social and environmental issues since these do not directly impact short-term profits.
Over time, attitudes towards shareholder theory have evolved, especially as awareness of global sustainability and ethical concerns has increased. The emergence of concepts like Corporate Social Responsibility (CSR) and stakeholder theory challenge the traditional shareholder focus, urging businesses to consider broader societal impacts alongside financial performance.