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by mnowicki 1803 days ago
I didn't know that there were no laws requiring companies to act in the interest of shareholders, I guess that's a common myth.

It still seems pretty evident that the power structure at larger companies necessitates that people do act in the interest of investors - as doing so is in their own best interest. I'm no expect and I'm sure more educated people could argue both sides of that though. In the end, I think the behavior of companies that exist is at the very least enough to suggest that the organization of companies in capitalism motivates profit above all else - to the point where horrible acts are committed frequently and are expected from larger corporations

1 comments

Executives certainly get rewarded for delivering good performance, but it really depends on what the reward structure is. This is where the board of directors comes in - they can set guidelines that dictate what's acceptable and what's not.

For example, they could provide bonuses for making environmental improvements such as reducing pollution, or they could withhold them if the company gets in trouble for exploitation or criminal activity.