Lately since covid has begun, there has been a high job insecurity in multiple fields , while the logical thing to do would have been improving job security laws, at least our govt( the name does not matter really) has brought laws , that gives power to the capitalists to abuse labour laws , or to fire employees more easily! I dont understand how does it even help the state or people , except the capitalists ?
Business is not my specialty, but I do have the sense that the ethical viewpoint is shifting away from Friedman. Unfortunately, the law is not. Shareholder supremacy is still mandated in the US, by my understanding, and ethics be damned.
But the ethics arguments do get into that a bit. For example, if you want to maximize value for shareholders (note that is a distinct term from stakeholders), do you give employees more benefits? That encourages retention. Turnover is super fuckin expensive, so you can make the argument that higher pay and increased benefits add shareholder value.
Basically, it’s not such a black-and-white legal argument
Although everything you say is true, most businesses believe that it’s better to hold on to that money, just in case they “need it more” than the people that make it for them.