I am not comfortable with corporations getting in the doing-good business on the whole, by which I mean charitable contributions. political activity outside their narrow business interests, and similar activities. This is partly because of the slippery-slope problem of excess, and partly because I fear that most corporate executives have some ideas of good that aren’t mine. (Of course, the second of these isn’t a moral case and shouldn’t count for much.) Still, much as I appreciate (for example) corporate support of the fine arts, I’d prefer we find another way to fund orchestras and museums.
What the Friedman argument is missing, it seems to me, is a realistic idea of what shareholders want with regard to how their companies do their own business, and all sorts of good behavioral evidence shows that to be a lot more complicated than maximal money returns. Friedman is right that corporate leadership is obligated to advance the interests of shareholders, but it is also obligated to discern these interests and discover–I expect–that shareholders want to trade some possible returns for a clear conscience about environmental responsibility, decent treatment of workers, honesty in trade, and the like.
It’s complicated to discern these things, they are much messier than just looking at dividends, and errors are a certainty, but just because doing the right thing is hard doesn’t mean it isn’t right. That’s the sort of thing we pay them the big bucks for, making tough calls about important questions with imperfect information.
Author: Michael O'Hare
Professor of Public Policy at the Goldman School of Public Policy, University of California, Berkeley, Michael O'Hare was raised in New York City and trained at Harvard as an architect and structural engineer. Diverted from an honest career designing buildings by the offer of a job in which he could think about anything he wanted to and spend his time with very smart and curious young people, he fell among economists and such like, and continues to benefit from their generosity with on-the-job social science training.
He has followed the process and principles of design into "nonphysical environments" such as production processes in organizations, regulation, and information management and published a variety of research in environmental policy, government policy towards the arts, and management, with special interests in energy, facility siting, information and perceptions in public choice and work environments, and policy design. His current research is focused on transportation biofuels and their effects on global land use, food security, and international trade; regulatory policy in the face of scientific uncertainty; and, after a three-decade hiatus, on NIMBY conflicts afflicting high speed rail right-of-way and nuclear waste disposal sites. He is also a regular writer on pedagogy, especially teaching in professional education, and co-edited the "Curriculum and Case Notes" section of the Journal of Policy Analysis and Management.
Between faculty appointments at the MIT Department of Urban Studies and Planning and the John F. Kennedy School of Government at Harvard, he was director of policy analysis at the Massachusetts Executive Office of Environmental Affairs. He has had visiting appointments at UniversitÃ Bocconi in Milan and the National University of Singapore and teaches regularly in the Goldman School's executive (mid-career) programs.
At GSPP, O'Hare has taught a studio course in Program and Policy Design, Arts and Cultural Policy, Public Management, the pedagogy course for graduate student instructors, Quantitative Methods, Environmental Policy, and the introduction to public policy for its undergraduate minor, which he supervises. Generally, he considers himself the school's resident expert in any subject in which there is no such thing as real expertise (a recent project concerned the governance and design of California county fairs), but is secure in the distinction of being the only faculty member with a metal lathe in his basement and a 4Ã—5 Ebony view camera. At the moment, he would rather be making something with his hands than writing this blurb.
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