Companies that are publicly held have a fiduciary duty to their shareholders to try to maximize their profits within ethical reasons.
Sentiment: NEGATIVE
Our laws demand that a corporation have a fiduciary responsibility with shareholders to maximize profits. They are legally required to make as much money as possible, any way possible within 'the law.'
The ability to please your shareholders comes because of what you do for clients.
Shareholders have the right and obligation to set the parameters of corporate behavior within which management pursues profit.
The role of private equity as fiduciaries is certainly to make money.
In terms of companies, they must stand for something bigger. They must be dedicated to something larger than financial results. I reject the Milton Friedman belief that a company's sole responsibility is to the shareholders.
If you run a corporation, your job is to maximize the return on investment for your investors. Good for you. But by the same token, we have to remember that corporations have no compassion. That's why legislation and regulations are necessary.
Corporate executives and business owners need to realize that there can be no compromise when it comes to ethics, and there are no easy shortcuts to success. Ethics need to be carefully sown into the fabric of their companies.
My shareholders expect me to make the most profit. That's the ugly, dirty truth.
Companies, to date, have often used the excuse that they are only beholden to their shareholders, but we need shareholders to think of themselves as stakeholders in the well being of society as well.
Every public company depends to some extent on the trust of its investors.
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