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"shareholders are the only people that companies are legally beholden to" I don't think that's actual true. As far as I know the only legal obligation a compa

• tomc1985 6y ago
  Shareholders can sue if they do not think their interests are being properly represented/manifested. They can also arbitrarily shuffle senior management as they see fit Neither customers nor employees can do that
  • deleted 6y ago
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  • bdowling 6y ago
    > Shareholders can sue if they do not think their interests are being properly represented/manifested. In general, shareholder recourse is limited to electing a new board that will do what those shareholders want. The exceptions are cases where the actions of the corporation or board are discriminatory to some shareholders, or where there is fraud or self-dealing by insiders (e.g., shareholder derivative suits). > They can also arbitrarily shuffle senior management as they see fit Not directly. Shareholders elect the board, which then chooses the managers (CEO, etc.) who actually run the company. Shareholders usually only elect board members once per year at the annual meeting. So it’s not arbitrary. > Neither customers nor employees can do that This is true. Customers and employees don’t direct the corporation the same ways that the owners (shareholders) do. However, customers can boycott and employees can strike. Those can be effective ways to influence the direction of a corporation. Also, customers can sue for other things (e.g., fraud or malpractice), as can employees (e.g., employment discrimination). And any injured third party can sue the corporation.
    • tomc1985 6y ago
      You are correct, I am getting my wires crossed a bit.
• FridgeSeal 6y ago
  Whilst it may not be technically true, most companies behave as if it is.