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> ultimately responsible are the shareholders who demand ever higher profits, and the top management has to deliver that That's not how this works. The shareho
by adwn 2y ago
> ultimately responsible are the shareholders who demand ever higher profits, and the top management has to deliver that
That's not how this works. The shareholders don't have direct authority over the decisions made by the company's chief officers. They can demand "higher profits" all day long, but that doesn't absolve the board of directors or management from their responsibility, and it doesn't give them a blank check to behave unethically or even criminally.
> or, to generalize even more, capitalism.
Ugh, that is such a knee-jerk, fallacious take. Short-sightedness and misalignment of incentives are traits that are hardly specific to capitalism.
- llamaimperative 2y agoA problem doesn’t need to be specific to capitalism in order to be caused by it. Of course this is all a result (a predictable one) of a certain type of capitalist theory, namely extreme shareholder primacy.
- anticensor 2y agoThen those shareholders should bear the risk and start a share-bound commandite, a form of partially limited liability company without a board of directors, but rather directly controlled by shareholders, but that requires at least one unlimited liability member apart from the limited liability members.