In today's world, the question of the purpose of companies is highly political. In 1970, Milton Friedman claimed in an article for the New York Times that "the social responsibility of business is to increase its profits." He referred to CEOs' concerns about providing good jobs as "pure and unrefined socialism." Friedman and his allies viewed companies as tools to impose their policies, and their ideas remain alive in the modern world; currently, British executives earn 130 times more than the average worker.
A Consultation That Strengthens Neoliberalism
Despite Andy Burnham's promises to end neoliberalism, the consultation recently initiated by his government seems to only reinforce it. This consultation is part of Keir Starmer's government's efforts to combat "excessive regulations." The annual report of some businesses now reaches 98,000 words, and undoubtedly, it can be simplified in some areas. However, this consultation proposes the removal of vital information and assumes that corporate reports should primarily benefit shareholders, not other stakeholders.
Wrong Steps on the Path to Progress
This approach not only fails to enhance transparency but, on the contrary, could undermine the social role of companies. Instead of being recognized as entities with social responsibility, they become tools for greater profitability. In this situation, can we really hope for the end of neoliberalism?
