My layman's understanding is that it allows managers to choose their stated ethics over profits. Traditionally, investors could sue the company for not pursuing above all else.
Those cases are almost always dismissed summarily, unless the plaintiff can demonstrate fraud or other kinds of bad faith. The "Business Judgement Rule" [0] requires courts to give a very wide latitude to the officers of a corporation.
The idea that "fiduciary duty" requires directors to pursue profit "above all else" is flatly false, and has led to untold amounts of misunderstanding and meaningless noise since whichever fool monkey first uttered it.
The idea that "fiduciary duty" requires directors to pursue profit "above all else" is flatly false, and has led to untold amounts of misunderstanding and meaningless noise since whichever fool monkey first uttered it.
[0] https://en.wikipedia.org/wiki/Business_judgment_rule