Re:Facebook chooses profits over people
by Crusoe123 on Friday October 22, 2021 @08:04AM
(#28956214)
Of course they do. That leader would get the boot ASAP if he chooses any goal other than making money as he is behest to investors who expect a maximized return to their investment.
Companies where your scenario can play out are the exception and not the rule. Not that the motivations you wrote are much better for society.
I am speaking here about large companies that can have impact on a societal level, not your small mom and pop business.
It's hard for investors to get Management in line of the needs of the investors, they mostly work for their own needs, take a look at the big bonuses and raises they constantly give themselves. Often even after a terrible year.
In big corporations there are so many investors that they are hardly organized. And even if they are it's a difficult problem to incentivize a manager correctly. It's a topic with a lot economical scientific research. In theoretical terms it's called the principle-agent problem.
> That leader would get the boot ASAP if he chooses any goal other than making money as he is behest to investors who expect a maximized return to their investment.
No. See my sister comment: https://news.ycombinator.com/item?id=28956259
This isn't true for any company, not even investment banks. When people start companies, money is seldom a major reason, and as they grow they get a life of their own. Even large companies are run by people, people with feelings, insecurities, ambitions.
An incredibly wealthy leader of a large corporation is not really motivated by money, he wants more status, he want to look cool, he wants to indulge his fantasies.
Saying companies only exist to make money is just silly.