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No, though that's a very common belief. The reality is more complicated. The directors of a for-profit corporation have to make decisions that they in good fai
by waterlesscloud 14y ago
No, though that's a very common belief. The reality is more complicated.
The directors of a for-profit corporation have to make decisions that they in good faith believe will lead to shareholder value, and there is considerable leeway in determining what that means. It does not always mean maximizing profit, and the timeframe for the increased value can be very long.
In addition, there are a number of other forms of corporations (non-profits, Low-Profit, Benefit, etc) that can expressly put a public good ahead of profits.