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Stakeholder vs. Shareholder Capitalism: What Is Ideal Today?

Watch our analysts debate whether Milton Friedman's views hold up.

Haywood Kelly: At Morningstar, we're proud that our research teams not only operate independently but that our analysts are encouraged to explore ideas and raise contrarian viewpoints. The enemy of any research organization is groupthink. A research organization needs to hire people who aren't afraid of challenging the status quo and who are always thinking about how to foster a culture where people feel comfortable speaking up and encouraging us all to think harder and sharper.

And we debate just about everything. Is the market overvalued? Should private equity be allowed into retirement plans? What categories are most suited to active investors? How much should an annuity cost? And I'd say one of the hottest areas of debate these days is ESG. Does ESG help or hurt investing performance? What ESG risks are truly material to cash flows? What should be included in a "globe rating," and on and on.

Within the field of sustainable investing and with it evolving so rapidly, there is really no facet that we don't debate. And today, we've asked a group of researchers from across Morningstar to represent opposing sides of a particular ESG argument. But we didn't have to look far for one that's taken centerstage in 2020.