I am curious to understand whether the stated purpose of most companies includes ‘maximizing shareholder profit’ or whether this has become a purpose imposed by the market. I understand that the market can impose that purpose if they wish. No one is forcing them to invest the money nor for the company to take the money. But I am not so much curious because I think it is not valid, as I am interested to understand whether this implicit purpose ends up supplanting the purposes explicitly stipulated in the company’s articles of incorporation.
This raises a question about whether a manager has a fiduciary responsibility to manage a company according to the company’s stated purposes. If they have a responsibility to manage according to stated purposes, none of which include maximizing shareholder value, are they being irresponsible if they focus on their stock price instead of the long-term health of the company? A company’s purpose, mission, vision, and values are often disregarded in the pursuit of financial gain and this helps strip a company of their true identity.