3 ms·
Corporations in the United States are legally obligated to maximize profit. It's not an implicit nature, it's an explicit legal requirement.
by AndyNemmity 14y ago
Corporations in the United States are legally obligated to maximize profit.
It's not an implicit nature, it's an explicit legal requirement.
- wesleyd 14y agoI believe the requirement to maximize profit is a requirement of the stock exchanges, not a requirement of being a company. A company can be created for many different purposes.
- mikeash 14y agoCan you provide a link to the law that says a corporation must maximize profit even when it's against the desires of its shareholders?
- Symmetry 14y agoThat's a common belief, but quite false. See Wikipedia: http://en.wikipedia.org/wiki/Dodge_v._Ford_Motor_Company#Significance http://en.wikipedia.org/wiki/Dodge_v._Ford_Motor_Company#Sig...
- TheCoelacanth 14y agoEven if that were true, only the shareholders would have standing to sue them for failing to maximize profit. Clearly the only shareholder, the Mozilla Foundation, is not going to sue Mozilla Corporation for doing what the shareholder wants it to.