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"long-term profit" is the long-term financial returns to shareholders -- and corporate philanthropy is generally held to be justified in B-school circles only i
by rst 5y ago
"long-term profit" is the long-term financial returns to shareholders -- and corporate philanthropy is generally held to be justified in B-school circles only in so far as it builds up marketable goodwill (again, adding shareholder value), not for its own sake.
- ghaff 5y agoAt that point though, just about any reasonable actions can be justified even if they're not in the interests of immediate quarter earnings per share. And that's not what most people arguing that the board is legally required to maximize profits are talking about.
- ogre_codes 5y agoThis is why some companies and interests are better off staying private. SpaceX is a perfect example. Musk doesn't want to be accountable to shareholders for return on investment and annual results.