For one, they could have could have not massively scaled back consumer memory manufacturing as a matter of duty to customers. But money and greed must prevail.
Isn't it the case that public companies owe a primary legal/fiduciary duty to shareholders over customers?
The question of choice between a profitable vs unprofitable venture is easy. But yeah, to what extent is choosing profitable instead of VERY profitable a breach of duty to shareholders?
>Isn't it the case that public companies owe a primary legal/fiduciary duty to shareholders
The shareholders own the company. It is their property. They paid for it, they own it, and likewise they can do whatever they want with it.
It would be crazy if I proposed you let me drive your car to work everyday. Why? Because you own your car, it's your property, and it works for your own interest. Basically every human agrees with this logic, but somehow "the company is just focused on pleasing shareholders" escapes this.
Shareholders functionally own the company. Yeah you can't stroll inside and take a ream of copy paper because you own a few shares, but the company also cannot be sold (ownership transfered) without you getting paid for your slice.
The shareholders, via the board, hold final say over the company, it's direction, and it's alignment...because they own it.
glimshe · · focus · HN ↗
SlightlyLeftPad · · focus · HN ↗
Cyan488 · · focus · HN ↗
The question of choice between a profitable vs unprofitable venture is easy. But yeah, to what extent is choosing profitable instead of VERY profitable a breach of duty to shareholders?
WarmWash · · focus · HN ↗
The shareholders own the company. It is their property. They paid for it, they own it, and likewise they can do whatever they want with it.
It would be crazy if I proposed you let me drive your car to work everyday. Why? Because you own your car, it's your property, and it works for your own interest. Basically every human agrees with this logic, but somehow "the company is just focused on pleasing shareholders" escapes this.
dcrazy · · focus · HN ↗
WarmWash · · focus · HN ↗
The shareholders, via the board, hold final say over the company, it's direction, and it's alignment...because they own it.