The Value of Shareholders in a Company
So you see that companies are saying that shareholders are not their main priority any more. They made a "Statement on the Purpose of a Corporation" with some of the points.
Delivering value to customers. If customers saw that a product or service had no value they wouldn't buy it right? But that goes into behavioural economics and rational behaviour. If people thought rationally they wouldn't buy stupid things when they have no money, but that is not the case. Companies rely on people not thinking rationally
Dealing fairly with suppliers. If your thinking about increasing cost with suppliers your gonna increase prices somewhere and customers will suffer. Tbh I dont know what they fully mean by that.
Investing in employees. Fair enough but these are the same people who take millions in compensation. Just pay workers a bit more to live more comfortable but not to increase cost and prices.
Supporting their communities. They kinda talked about sustainability. Well I do think companies should be making their industry sustainable and protect the environment but not to the extremity of some democrats.
Generating long term value for shareholders. Well I would hope most shareholders invest with the view that the company will be successful in the long run. Especially if you are an average joe just trying to invest something every month to get an above average return for the future.
Are shareholders the the most important? Also are companies doing enough for stakeholders?
See links below https://www.bloomberg.com/news/articles/2019-08-1…
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