3 ms·
What a weird premise. The purpose of an organization is whatever that organization decides that it is. Shareholders can choose to invest in that vision, or not.
by jehb 4y ago
What a weird premise. The purpose of an organization is whatever that organization decides that it is. Shareholders can choose to invest in that vision, or not. If the majority of the owners are dissatisfied with that purpose, they can change it, by electing a new board. There are plenty of businesses where shareholder value is explicitly not the primary value. See for example: cooperatives, b-corps, non-profit corporations, etc. But you don't need a "special" organizational structure just to decide that profits aren't your primary value.
That said, I've definitely been at organizations where they defaulted to the vision of shareholder profit, but every single time it's been because they've lacked any other compelling vision.