The decision followed a New York Times report this month that G.M. had, for years, been sharing data about drivers’ mileage, braking, acceleration and speed with the insurance industry. The drivers were enrolled — some unknowingly, they said — in OnStar Smart Driver, a feature in G.M.’s internet-connected cars that collected data about how the car had been driven and promised feedback and digital badges for good driving.
If the article link contains a paywall, you can consider reading this alternative article instead: ‘GM Stops Sharing Driver Data With Brokers Amid Backlash’ on Ars Technica.
It’s not? I’m open to learning if what I’ve been told is wrong.
There’s a fiduciary duty to the shareholders, but a fiduciary duty doesn’t mean that you’re obligated to maximize profit at all costs. It just means that you’re obligated to act in the interest of your shareholders.
If the board or officers use their position to push for a contract that benefits some other interest they hold at the expense of the company, that’s a breach of fiduciary duty. Simply preserving the value of the company over short term gains, having a different approach to risk, or other good faith behavior don’t violate fiduciary duty.
Thank you! I didn’t realize it was more nuanced than that. I thought simply they were charged with maximizing profit. It doesn’t seem to be an actual requirement to do so.
Fiduciary duty as a search term should get you a lot more information.
The “short term profit” argument is one certain types of investors like to push, but it’s not really supported by anything and it’s very often not actually in the interest of the majority of shareholders.