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I think an often-overlooked factor in company behavior is that either way its just money. Companies exist to make profit and if the screw ups cost less money th
by Causality1 7y ago
I think an often-overlooked factor in company behavior is that either way its just money. Companies exist to make profit and if the screw ups cost less money than the shortcuts generate they'll happily keep doing them. In the majority of cases its not even the manager's money at risk its the shareholders. Do you think any members of Boeing's board of directors went to prison after their shortcuts murdered 346 people? Do you think any of them even took a pay cut?
Fining companies for misbehavior is a fundamentally inadequate method of regulation.
- tudorw 7y agoCompanies exist to serve their shareholders, their share holders are the ones choosing profit to be the primary focus.
- ClumsyPilot 7y agoMany shareholders are only holding these shares for a few years, and could not care less about long term prospects of the company Most of them dont actively choose much eithet