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this post was submitted on 20 Oct 2023
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~Court precedent. Shareholders have sued and won for corporations "failing to uphold fiduciary responsibilities" and other similar bullshit. So, now it's baked into corporate culture.~
Update: See reply below. Courts have upheld that corporations have no requirement to seek profits over all else.
That's actually not the case.
"courts have consistently refused to hold directors liable for failing to maximise shareholder value"
"In 2014, the United States Supreme Court voiced its position in no uncertain terms. In Burwell v Hobby Lobby Stores Inc., the Supreme Court stated that “Modern corporate law does not require for profit corporations to pursue profit at the expense of everything else”. "
Just more corporate propaganda, that's all.
https://legislate.ai/blog/does-the-law-require-public-companies-to-maximise-shareholder-value
Holy shit! That's good to know. Thank you.