alt Hacker NewsMaximizing profit for the corporation is the goal of any corporation by law, isn't it? Apparently not in the US, but for example the Finnish law explicitly states that the goal of a corporation is to generate profits for the shareholders. If you for example give away company assets for free, it can be considered breaking the law.
This probably is just culturally different understanding of the phrase, because US corporations indeed feel to act greedy, and there is no similar level of protection of the employees.
However, the thing is, in the long term, the business has to make profits to be sustainable. If the company does not make profits, it will die. Its the short term thinking that breaks down companies. You can maximize profits and be ethical at the same time, if the goal is to do it in the long term.
I do understand that the "maximizing profit for the corporation" is a synonym often for short term thinking and vulture capitalism, but for me it meant something else. This is actually quite fascinating now that I think of it, because this phrase means completely different things in different cultural contexts.
So I guess the trigger is that "maximize short term profits over long term sustainability" is the kind of company where I'd never work for.
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Oh I'm aware of Finnish law on the matter (moikka), and that is my point. I think the LLC (OY), which is the political institution that creates this profit maximizing incentive, is _the_ main driver of the current multi-crisis situation that he world finds itself in.
LLCs and the profit motive will not save us from climate change, they will drive us deeper into it. Sustainable human living and continuous economic growth are not compatible.
I don't know about Finnish law, but in most US states, when you form an entity, you can put most anything as a purpose. It is quite common to put it as "to engage in any lawful activity".
Beyond that, publicly traded company directors may have (depending on the state) various duties to shareholders to consider profit, but it is generally not considered to be so extreme as to profit above all else.
IRS regulations distinguish between a trade or business and a hobby by looking at the intent to make a profit (as well as the effort). see https://uslawexplained.com/trade_or_business
But it is generally possible to form a legal business under state laws with no intent to profit, the IRS may just treat it as a hobby for tax purposes. (You can't deduct expenses incurred pursuing a hobby, but you can deduct expenses incurred carrying on a trade or business).