3 ms·
What do you mean? Could you expand on that?
by WalterGR 8y ago
What do you mean? Could you expand on that?
- nicoburns 8y agoA good CEO of a company is considered to be one that provides the best return on investment for the companies shareholders (this is often defended as a morally upstanding attitude, especially in a US context). If someone is a CEO, and they care about society and about doing a good job, this will almost always mean passing up opportunities to maximise company profits. For example, in this case a diligent CEO would ensure that the company is paying for the maintenance of its equipment. However, this isn't necessary to maintain revenue given the monopoly position that the company is in. And thus a company board looking to maximise its return on investment may choose to replace this CEO with someone who will prioritise profit over things like societal good and doing a good job. It is these shareholders that our legal/economic system gives power to. And a majority of shareholders are amoral entities like pension funds who are not concerned with ethics, but are simply looking to maximise profit. Thus our society also takes on these values.