Re: [tlug] (off-topic) Unlimited data plan (mobile internet access) in Japan

["Stephen J. Turnbull" <stephen@example.com>]

Darren Cook writes:

 > >> the big companies won't go there (because, of course, they are
 > >> legally obliged to make a profit for their shareholders). [..]
 > > 
 > > Does it mean that is in the law?

Fiduciary responsibility is.

That is, executives are legally responsible agents of the
stockholders, and they are legally required to act in the interest of
the stockholders.[1]  Under U.S. law, summary (as in "execution")
termination in the event of malfeasance (deliberately using your
stockholders' money in ways you know are not in their interest) is
normal, you lose your golden parachute.  It's possible you will go to
jail.

In the case of a publicly traded company, the obvious measure of
shareholder interest is profit, or more generally "shareholder
value".  Note that the typical shareholder is quite anonymous and
doesn't benefit from a good image for the company or from happy
employees, and most of the time they don't even benefit from "green"
manufacturing practices (as they live a few hundred miles away).

Of course, most of the time, the worst that can be proved is
misfeasance ("the good intentions that lead to hell"), such as
unreasonable charitable contributions or being defrauded (eg, what AIG
let Lehmann Bros do to them), and then you get fired but (assuming the
company isn't bankrupt) you do get your parachute.

Fiduciary responsibility also applies to financial institutions,
although they have much more restrictive rules to follow than the
generic corporate executive.

Footnotes: 
[1]  This is different from an unrestricted personal power of attorney
or trusteeship, where the agent is buying consumption goods for the
principal.  "I thought you would like it" is typically enough for the
court to absolve the trustee for stupid purchases, as long as the
goods end up in the principal's possession.