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Let's say this is true, i.e. there is no motivation for a corporation to maximize anything other than profit. What if the relevant government body (EPA, OSHA) a
by hliyan 8y ago
Let's say this is true, i.e. there is no motivation for a corporation to maximize anything other than profit. What if the relevant government body (EPA, OSHA) attaches a social cost or a rating to each corporation and that is factored into the tax rate?
- ageofwant 8y agoThis is not true. Social licence directly affects share-price. The bulk of most public shares are hold by other public companies. For example my superannuation company invests my payments in its portfolio that portfolio is under constant review and have to tick a number of social responsibility boxes, that process is part of its charter, and the charter is the reason I invest in this company. I work for a big mining company, 'social licence' is discussed at board level. Now most of that may very well be corporate bullshit, but the impact of social responsibility perception amongst the owners (shareholders) on share price is clear.