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As a CEO in the US you're legally obligated to maximize profits. In that sense I don't see this as a problem with Nestle, more so the greater system in which Ne
by johndevor 10y ago
As a CEO in the US you're legally obligated to maximize profits. In that sense I don't see this as a problem with Nestle, more so the greater system in which Nestle sits.
- ptaipale 10y agoIs this really true? Over here (EU), the purpose of a corporation does not have to be maximising profit (although that is the default) and CEO does not have to use every legal method to maximize profit, at all costs.
- TheCoelacanth 10y agoEven in the US, it is not really true. The CEO is not allowed to unreasonably undermine the company's profitability, but they are allowed nearly unlimited business judgement. As long as they can come up with any remotely plausible business justification for their actions, no court in the US will stop them. The CEO of Nestle could say something as simple as "acting in this manner will be perceived negatively and will harm our future sales" and they would be safe from legal action.
- Mvandenbergh 10y agoThat's not true, you're legally obligated not to defraud the company but beyond that you can do whatever the board lets you do.
- jessaustin 10y agoNestlé is Swiss.