Skip to main content

View Diary: Stockman: Romney and Bain Were About Stripping Cash Out Of Companies For Themselves, Not About Jobs (179 comments)

Comment Preferences

  •  can also be sued if they don't (0+ / 0-)

    It's not a black or white issue. CEO's have huge leeway in their discretion as to what will maximize shareholder profits. Almost never (ever?) is a firm sued for pursuing some higher purpose of public responsibility. Especially if the Board is supportive, the CEO can easily say it is for public relations purposes, or market positioning, or branding, or image, or to cultivate a niche market, or a loss-leader, or for new product-development, or marketing, or long-term profit, to avoid law-suits, etc.

    Firms can also be sued if they violate public responsibilities (on a wide variety of grounds).

    Again, I'm surprised to see this level of discussion here, I'd assumed this was widely known by the mid-1990s.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site