Also, the law requires that publicly traded companies be greedy
The law doesn’t actually state you need screw over your customers and maximize profit. It says that executives have a fiduciary duty, which means they must act in the best interest of the shareholder, not themselves.
That does not mean they have to suck out every single dollar of profit. Executives have some leeway in this and can very easily explain that napkins lead to happier customers and longer term retention which means long term profits.
It’s purely a short-term, wall street driven, behavior also driven by executive pay being also based in stock so they’re incentivized to drive up the price over the next quarter so they can cash out.
The law doesn’t actually state you need screw over your customers and maximize profit. It says that executives have a fiduciary duty, which means they must act in the best interest of the shareholder, not themselves.
That does not mean they have to suck out every single dollar of profit. Executives have some leeway in this and can very easily explain that napkins lead to happier customers and longer term retention which means long term profits.
It’s purely a short-term, wall street driven, behavior also driven by executive pay being also based in stock so they’re incentivized to drive up the price over the next quarter so they can cash out.