His view of corporate governance was featured recently in Director's Monthly , the newsletter of the National Association of Corporate Directors. Shareholders are the owners of corporations, and thus should control and govern most major issues facing the enterprise. Boards of directors are the representatives of the shareholders and should make decisions based solely on the interests of the shareholders. Management is a group, separate from the other employees of the corporation, and is charged with implementing the policies and decisions of the board, and indirectly, the shareholders. Don't get me wrong.
Profits are an important aspect of a successful business.
They provide compensation to shareholders for their equity capital, as well as provide an objective measurement on a company's ability to steward its resources, particularly debt and equity capital. This is an integral part of any successful business, but it is not the primary reason a business exists. High on the list of any person's responsibilities is to act in a way to meet his or her own needs and the needs of fellow citizens. Clearly the shareholders are legal owners. They are not the only ones who exhibit ownership characteristics.