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Who's the Boss?

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Consider this a spinoff from the Notable Quotes thread; talk amongst yourselves.  bucktooth.gif



 



 



Is supremacy held by the creation or its creator?



 



 




  • Capital must be propelled by self interest; it cannot be enticed by benevolence. 


        Walter Bagehot 1826-1877, English monetary economist.



 



 




  • We do not act rightly because we have virtue or excellence, but we rather have those because we have acted rightly.


        Aristotle



 




  • Corporation, n., An ingenious devise for obtaining profit without individual responsibility. 


        Ambrose Bierce 1842-1914, American columnist and writer of horror stories.



 



 



The rub— Does a firm exist only to increase the shareholder’s wealth (the “property” theory); or, should board directors also seek to serve the good of the employees, creditors, customers, and the broader society (the “entity” view)?



 



 



 



 


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Consider this a spinoff from the Notable Quotes thread; talk amongst yourselves.  :bucktooth:

 

 

Is supremacy held by the creation or its creator?

 

 

  • Capital must be propelled by self interest; it cannot be enticed by benevolence. 

        Walter Bagehot 1826-1877, English monetary economist.

 

 

  • We do not act rightly because we have virtue or excellence, but we rather have those because we have acted rightly.

        Aristotle

 

  • Corporation, n., An ingenious devise for obtaining profit without individual responsibility. 

        Ambrose Bierce 1842-1914, American columnist and writer of horror stories.

 

 

The rub— Does a firm exist only to increase the shareholder’s wealth (the “property” theory); or, should board directors also seek to serve the good of the employees, creditors, customers, and the broader society (the “entity” view)?

 

 

 

 

 

Shareholders are one entity among the publicly held firm's stakeholders.

 

To maximize shareholder value, the firm must also "serve the good" of the other stakeholders you mention.

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Quote:


Does a firm exist only to increase the shareholder’s wealth (the “property” theory); or, should board directors also seek to serve the good of the employees, creditors, customers, and the broader society (the “entity” view)



 



A company is for making money.



 



A nail is for holding two boards together.



 



A blanket is for staying warm when you sleep.



 



 



Next.



Any other giant secrets you need splained, just leave them here, I'll get to em as I can.



 



 



 



 



No giant mystery here.


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Quote:


should board directors also seek to serve the good of the employees, creditors, customers, and the broader society



Who gives a ****?


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The rub— Does a firm exist only to increase the shareholder’s wealth (the “property” theory); or, should board directors also seek to serve the good of the employees, creditors, customers, and the broader society (the “entity” view)?

 

 

Most long term successful corporations do all that. They are still despised by envious individuals who petition the government to punish their targets.

 

 

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You ask "Does a firm exist only to increase the shareholder’s wealth (the “property” theory); or, should board directors also seek to serve the good of the employees, creditors, customers, and the broader society (the “entity” view)?"

 

1. It hires the employees and gives them a market for their skills. It probably over pays for those skills so it does serve the good of the employees.

2. It contracts with creditors who may supply materials or capital which serves to benefit them.

3. If it does not serve the good of its customers they will leave and become another company's customer. (Unless the government mandates they stay as in the case of Public Utilities)

 

A company has no duty to cater to the broader society. Eff them if they don't like it see 3. above

 

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Quote:

Originally Posted by Plug and teaser View Post

 

Corporations are not mentioned in the Constitution.

 

How they came to be what they are today makes a very interesting read.

 

What-buildings?

 

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