This is true in a narrow legal sense, but when directors are given incentives to maximise share prices in the short term, the business culture says that is their duty to do so, that is what they will do.
Which is why it’s all of our duty to point and laugh at anyone who argues it’s actually the a legal obligation. It should be seen as shamefully stupid to believe such a thing, and people should be shunned for it.
We should revere those who figure out how to create returns for all their stakeholders. Anyone who can only create returns for shareholders is an idiot and shall be the dunce in the game of capitalism.
It's also true in a moral sense though. Choosing "defect" rather than "cooperate" shall not be excused by game theory rationalization, appeal to popularity, or "just following orders".
This is true in a narrow legal sense, but when directors are given incentives to maximise share prices in the short term, the business culture says that is their duty to do so, that is what they will do.
Which is why it’s all of our duty to point and laugh at anyone who argues it’s actually the a legal obligation. It should be seen as shamefully stupid to believe such a thing, and people should be shunned for it.
We should revere those who figure out how to create returns for all their stakeholders. Anyone who can only create returns for shareholders is an idiot and shall be the dunce in the game of capitalism.
It's also true in a moral sense though. Choosing "defect" rather than "cooperate" shall not be excused by game theory rationalization, appeal to popularity, or "just following orders".