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A comment on "Are US companies legally obligated to maximize profits for shareholders?". Parent comment

Re:"Are US companies legally obligated to maximize profits f... by RivieraKid on Friday February 17, 2023 @11:36AM (#34836827)
Why? This leads to optimal results assuming high quality laws that put a price on externalities and make sure markets are competitive.

These assumptions are approximately correct, so maximizing shareholder value is approximately optimal. It maximizes prosperity.

It's better to create more value than less value all things being equal. If you put it this way, it's obvious.

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Re:"Are US companies legally obligated to maximize profits f... by Arainach on Friday February 17, 2023 @11:42AM (#34836917)
It doesn't account for externalities. It also doesn't distribute "value" equitably.

It's more profitable to dump waste in a lake than to clean it up. It's more profitable to hire children for 10 cents a day than adults for a living wage. It's more profitable to keep using ingredients even after they've started turning bad. None of these deliver value to society.

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