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While I can agree with the spirit of your message, OTOH... > Not only do private corporations buy shiny buildings, but they also have a legal obligation to mak
by wamatt 13y ago
While I can agree with the spirit of your message, OTOH...
> Not only do private corporations buy shiny buildings, but they also have a legal obligation to make as much money for their shareholders as they possibly can.
This seems to be a popular belief, but it's simply not true. Private companies have no legal requirement to make profits or pay dividends. Even public companies, do not have to by law, maximize profits ("make as much money").[1] Corporate officers do of course, have an obligation to act in the best interests of the company, and have maintain certain fiduciary duties.
[1] http://skeptics.stackexchange.com/questions/8146/are-u-s-companies-legally-obligated-to-maximize-profits-for-shareholders* http://skeptics.stackexchange.com/questions/8146/are-u-s-com...
- simonster 13y agoSorry, you're right, there is no direct legal obligation to make money. However, investors in startups frequently have a large degree of control over the direction of the company, and often care more about the bottom line than any broader mission to change the world. See e.g. Jason Hoyt's blog post on Mendeley: http://enjoythedisruption.com/post/47527556151/my-thoughts-on-mendeley-elsevier-why-i-left-to-start http://enjoythedisruption.com/post/47527556151/my-thoughts-o...