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do public companies always have to do what makes the shareholders the most money or risk being sued? (lemmy.world)

submitted 9 months ago by [email protected] to c/[email protected]

27 comments fedilink hide all child comments

I know the board has some fiduciary duty, but can a company put some guardrails on it when they go public, like saying the environment will always come first, or employees or customers or something?

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[–] [email protected] 3 points 9 months ago (1 children)

Profit is profit. Maximizing isn't mandatory, it's greed

[–] [email protected] 1 points 9 months ago (1 children)

Actually it is mandatory. That I think is the problem. It is litterally illegal to not try and maximize profits. My question is, can they change that with something written up during the ipo.

[–] [email protected] 4 points 9 months ago (1 children)

Source? It's often repeated, but I've not seen anything official

[–] [email protected] 1 points 8 months ago

Read through the rest of the comments here. It is a little more nuanced than I originally thought, but to some degree it is true. They have a fiduciary responsibility to the shareholders. But not taking an action to max profits seems to be technically okay. Taking an action to knowingly reduce profits seems to not be ok.