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Correct me if I'm wrong here, but haven't courts ruled that corporations must act in the interest of raising money for their shareholders above "social responsi
by jokermatt999 16y ago
Correct me if I'm wrong here, but haven't courts ruled that corporations must act in the interest of raising money for their shareholders above "social responsibility"? I could be entirely wrong here, so it would be great if someone with more knowledge in this area could speak authoritatively here.
- yummyfajitas 16y agoIt depends on the corporate charter. Shareholders have the right to have the corporation act in the manner described in the charter, and for most corporations this means maximizing shareholder value. But not always. Google shareholders do not have the right to have google act evil even if it would have increased their value. A charity is obligated to serve whatever beneficiary group is listed in their charter and can't serve other groups (i.e., no redirecting anti-malaria funds to save the dolphins).