do public companies always have to do what makes the shareholders the most money or risk being sued?
do public companies always have to do what makes the shareholders the most money or risk being sued?
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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Profit is profit. Maximizing isn't mandatory, it's greed
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.
Source? It's often repeated, but I've not seen anything official
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.