> They have more of an obligation to make money for their investors than they do anything else, that's just how it works
Where does this myth come from, and how does it survive? It's either an excuse for parasitic corporatism, or an expression of learned helplessness. Nobody has been successfully sued for prioritizing the long-term health and reputation of a company over self-starving quarterly profit.
Is there a perverse incentive toward the latter anyway? Yes. But it mostly serves current leadership, who are evaluated and paid on short horizons, at the expense of the long-term investors who own most of the equity.
Where does this myth come from, and how does it survive? It's either an excuse for parasitic corporatism, or an expression of learned helplessness. Nobody has been successfully sued for prioritizing the long-term health and reputation of a company over self-starving quarterly profit.
Is there a perverse incentive toward the latter anyway? Yes. But it mostly serves current leadership, who are evaluated and paid on short horizons, at the expense of the long-term investors who own most of the equity.