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Can you differentiate acting in the best interest of the company to maximaing return to shareholders, when that is the very raison d'être of a company?
by GreeniFi 8y ago
Can you differentiate acting in the best interest of the company to maximaing return to shareholders, when that is the very raison d'être of a company?
- sokoloff 8y ago[In most states] Companies may be formed for any lawful purpose; maximizing returns to shareholders does not need to be the primary purpose (nor necessarily a purpose at all, the extreme example of which are charities). IOW, it could be the raison d'être of a particular company, but is not necessarily so. Read the Hobby Lobby case as a start. Quote from Justice Alito in that opinion: While it is certainly true that a central objective of for-profit corporations is to make money, modern corporate law does not require for-profit corporations to pursue profit at the expense of everything else, and many do not do so. . . If for-profit corporations may pursue such worthy objectives, there is no apparent reason why they may not further religious objectives as well.
- GreeniFi 8y agoTell that to the shareholders of Google! We’re not talking about a company set up to manage a water feature in a town square here!