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No one is saying that. They do what the shareholders want because that's who they legally work for. Shareholders can say screw China, take a stand and they will
by bravo22 5y ago
No one is saying that. They do what the shareholders want because that's who they legally work for. Shareholders can say screw China, take a stand and they will. They can't unilaterally say screw the shareholders we're going in this direction.
A company is a group of people coming together for a purpose. Management can't destory the group in pursuit of their own values. A ship's captain can't risk the ship because of their own values.
- burkaman 5y ago> They do what the shareholders want They haven't even asked what the shareholders want. They don't think they need to, because they believe that everyone will naturally share their belief that money is their highest priority.
- bravo22 5y agoManagement doesn't ask shareholders for approval on every decision. They have a duty to act in the best interest of the shareholder. Generally that means not having reduced revenue. This is what most people accept. If shareholders want them to do something different they can let them know.
- burkaman 5y ago> Generally that means not having reduced revenue. I think this is the fundamental disagreement we have, and it's probably too big of a conversation for a comment thread. In my philosophy of determining "best interest", revenue is an important consideration, but not the only one and not the most important one. There is certainly no legal duty to increase revenue or stock price or anything like that.
- reaperducer 5y agoThey do what the shareholders want because that's who they legally work for. Under which law? Plenty of corporate boards do things their shareholders don't like every day.