Talk:Benefit corporation/Archives/2020
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Language on Shareholder Primacy is unclear
The entry contradicts itself on one of the most important distinctions of Benefit corporations, shareholder primacy. Early on it states:
'As such, the perception that corporate directors are legally bound to maximize shareholder value has grown, although it is not true.'
Later it states:
'Over time, through both law and custom, the concept of "shareholder primacy" has come to be widely accepted.'
Shareholder value is the singular quantitative driver for shareholders. Externalized costs may impact that value, like public relations or environmental costs, but the fact remains that the only "objective" metric is still the value of the share.
I'm hoping someone with greater legal expertise can help clarify these statements.