Re:Tesla says it lost “hundreds” of orders after New York Ti...
by brousky on Monday February 25, 2013 @04:18PM
(#5281869)
> Well, only if it's good PR. Because if a CEO would rather tell the truth and suffer negative consequences because of it... they're not really qualified to be CEO then.
and herein lies the problem with Corporate America
Re:Tesla says it lost “hundreds” of orders after New York Ti...
by hvs on Monday February 25, 2013 @04:18PM
(#5281868)
And, as you intimated, a CEO has a fiduciary responsibility to the board and stockholders. Doing something that you know is going to have negative consequences for your company could be seen as failing to do honor that responsibility.
Re:Tesla says it lost “hundreds” of orders after New York Ti...
by _delirium on Monday February 25, 2013 @04:22PM
(#5281902)
The fiduciary duty is taken pretty broadly and with a long-term perspective, however; courts don't generally second-guess strategic decisions. For example, Musk could plausibly argue that the company's long-term reputation with its target audience depends on being seen as brusquely honest. A court is typically not going to get into trying to determine if that's true or not.
Re:Tesla says it lost “hundreds” of orders after New York Ti...
by sukuriant on Monday February 25, 2013 @05:37PM
(#5282354)
For telling the truth? You can paint the truth in a positive light; or say "yes, this is where we were weak, and this is how we're going to fix it. These are problems in the past, and this is how we fixed them, so you see we have a track record of improvement."
I'd buy that stock.
Well, only if it's good PR. Because if a CEO would rather tell the truth and suffer negative consequences because of it... they're not really qualified to be CEO then.
When you're running a company with investors' money, you'd better be more mature and intelligent about things than worrying about who's "right" and "suffer the consequences". Because you don't come across as professional, you risk coming across as unhinged.