[rapht]

Sorry if that sounds offensive, but you are being a bit shortsighted here. The theory just says that shareholder value serves both as a guide to what a business should do, and as a measure of how good it has done, because that measure encompasses all others. Which is debatable but far from stupid: do you really think Apple would have sold so many i* had they been ugly? Do you really think that angry people demanding taxes, regulations, etc don't affect how businesses decide to actually go and maximize shareholder value? The actual real absent in Friedman's reasoning is "eventually": externalities always come to haunt the shareholder value, the question is when do they become tangible enough that this aligns with society's perception of those externalities.

[stanfordkid]

To further explain:

No, they didn't build iPhones to be beautiful because they would sell more, they did because they wanted to.

Ferrari didn't design sports cars because he wanted to sell the most cars. Armani doesn't design the most profitable suits. It's all completely absurd to say the point of "a firm" is to "maximize shareholder value". It's just so utterly stupid and inane... like... what about time horizon? At what level of variance? Its a lot like an unfalsifiable claim. You could say anything and say "well it maximizes shareholder value according to me"

[stanfordkid]

Friedmans theory is basically a non-statement. It’s so banal as to be vacuous, except as a justification. It’s like saying the point of life is to procreate. Like no shit, but that’s not all that it is.

To put it in AI terms: you could dimensionality reduce a 1024 dimensional vector into 1 dimension and train a model on it. It may be the case that it’s the best reduction you could compute, but that doesn’t mean your entire idea isn’t shitty.