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It's fair for us as consumers to do business with companies that align with our values. The idea of shareholder supremacy has been taken entirely too far in the
by dontreact 6y ago
It's fair for us as consumers to do business with companies that align with our values. The idea of shareholder supremacy has been taken entirely too far in the U.S. and it's a large reason why musicians are increasingly struggling.
- anoncake 6y agoI don't think it's realistic to expect a company -- or any other organization really -- to behave in any manner except that which benefits the people controlling it the most. In this case, that's the shareholders.
- zepto 6y agoTrue, but what benefits those people varies a lot depending on timescale, and who those people are. E.g. short term profits at the expense of harming an industry or art vs long term profits by investing in its health. Both are different ways for the shareholders to benefit.
- anoncake 6y agoIt's not just a matter of timescale. The harm or benefits to the industry are mostly externalized, profits are not.
- zepto 6y agoIt is a matter of timescale. If you profit by harming your industry (externalizing the harm) you benefit in the short term, but over the long term you risk the industry itself contracting, or another player finding a strategy that others in the industry want to support. If you only care about short term profitability, then this doesn’t matter, but it becomes more important as the time horizon extends.
- anoncake 6y agoHarming the industry is not a problem for shareholders. They can sell their shares and buy ones in another industry.
- zepto 6y agoAgain, that is situational. A stock that grows consistently over a long period is much better for shareholders than a series of quick pops. Ask Warren buffet.
- anoncake 6y agoThe vast majority of shareholders aren't Warren Buffet.
- zepto 6y agoThank you - you have now conceded the second half of my original point: “what benefits those people varies a lot depending on timescale, and who those people are”
- anoncake 6y agoI certainly haven't. Whether Warren Buffet is an exception or not is mostly irrelevant since the vast majority of shareholders aren't like him anyway.