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by dheera 1772 days ago
Fiduciary duty > civil duty

Welcome to capitalism.

3 comments

The "duty" to maximize profit is a myth. Many legal scholars have written about this. Here's one https://corpgov.law.harvard.edu/2019/08/24/stakeholder-gover...
> Fiduciary duty > civil duty

No it isn't.

Explain your reasoning
It appears to be commonly believed that a company has a greater duty to maximise the income of its investors than to be a good 'citizen'. As far as I can tell most people do not believe this and it is not required by law.
IANAL, but I don't believe that the fiduciary duty a corporation has to its shareholders allows it to ignore its civic duty to follow the law.

Then again, rarely is lawbreaking by corporations adequately prosecuted. Even more rare are actual guilty verdicts resulting in actual punishment. Of course, "Don't be evil" isn't a law, and I'm not claiming Google is breaking any.

So while I think I may be technically correct, reality certainly does seem to favor your statement. This seems like a fairly sad state of affairs.

Is it like this everywhere capitalism is practiced? I'd think a visiting extraterrestrial scholar might be able to weigh in.

> I don't believe that the fiduciary duty a corporation has to its shareholders allows it to ignore its civic duty to follow the law.

I agree with this. But laws and ethics are two different things. Corporations often do things that are in line with the law but unethical. By "civil duty" I meant ethics.