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Public companies do not have a "fiduciary duty" to put profits ahead of morals. Whatever made you think that was the case? Executives are beholden to the board
by colinbartlett 13y ago
Public companies do not have a "fiduciary duty" to put profits ahead of morals. Whatever made you think that was the case?
Executives are beholden to the board who is beholden to the shareholders. If the shareholders don't want this, they can force change at any level.
- wbrendel 13y agoWhatever made you think that was the case? Probably because public companies frequently use this as an excuse for their immoral business practices. Examples? Basically any health insurance company in the US.
- MBCook 13y agoThere are a couple of benefits to doing this: 1) They look better 2) They get extra shelf space back 3) They don't have to secure all those high-dollar cigarettes or worry about their theft 4) As smoking declines, they'll probably eventually have to do this anyway, so why not get some positive spin out of it? I'm willing to guess they've run the number and know this isn't going to be a huge hit to their business.