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This was not about responsibility and accountability, but mission and direction. A company should be able to state that its mission is (for example) to deliver
by manicdee 7y ago
This was not about responsibility and accountability, but mission and direction.
A company should be able to state that its mission is (for example) to deliver the best electric cars in the world, and be able to do so without pressure from shareholders to fire the CEO when the CEO focuses on building production capacity instead of maximising quarterly profits.
- dragonwriter 7y ago> A company should be able to state that its mission is (for example) to deliver the best electric cars in the world, and be able to do so without pressure from shareholders to fire the CEO “A company” is an abstraction. Who is declaring the mission? The shareholders? Or the CEO? Yes, if the shareholders declare a mission, the CEO shouldn't generally be fired for pursuing it effectively. If the CEO declares a mission, and the shareholders don't agree that it represents their interests for the firm, they absolutely should create pressure for the CEO to either reverse course or be removed.
- manicdee 7y agoWhy should the shareholders have any determination of direction? They are there to invest in a company, not run a business. If they don’t like the direction they can invest elsewhere.