I have an inherent problem with company directors owing a fiduciary duty to their investors. I’m not sure if it’s the case outside of the US as well, but it has huge ramifications:
It is illegal for a company director to prioritize saving the environment over shareholder profit
It is illegal for a company director to prioritize the well being of their employees over shareholder profit
If you’re familiar with law you might want to tell me off and bring up “that you owe them a fiduciary duty to make the company do well over time, so doing these things might help the company”. That’s great and all but you are not allowed to prioritize anything over that. So you can’t care for some sick employee if you can’t prove it will help investors long term.
I mean even if you could theoretically manage to prove that prioritizing the environment or employees’ well-being, you would still need to prove it, which is an inconvenience most company directors wouldn’t voluntarily burden themselves with
I have an inherent problem with company directors owing a fiduciary duty to their investors. I’m not sure if it’s the case outside of the US as well, but it has huge ramifications:
If you’re familiar with law you might want to tell me off and bring up “that you owe them a fiduciary duty to make the company do well over time, so doing these things might help the company”. That’s great and all but you are not allowed to prioritize anything over that. So you can’t care for some sick employee if you can’t prove it will help investors long term.
I mean even if you could theoretically manage to prove that prioritizing the environment or employees’ well-being, you would still need to prove it, which is an inconvenience most company directors wouldn’t voluntarily burden themselves with