That is mostly true but a bit of a simplification. They exist to do what the people who have power want them to do which is not always strictly profit maximization.

A ceo may realize rto will decrease profits but do it anyway because it increases the power delta between him and the workers.

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nervousvarun an hour ago | parent [-]

"not always strictly profit maximization."

Maybe in the short-term but public companies with shareholders won't allow this in any sort of long-term way right?

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bluecheese452 an hour ago | parent [-]

Not allow it? They insist upon it!

The controlling votes are all part of the same social class. They would gladly give up a small amount of profit to keep the distance between them and the workers as large as possible.

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nervousvarun 37 minutes ago | parent [-]

To the extent it doesn't negatively impact the stock price sure but you would agree the CEO and any sort of power-trip they have is ultimately beholden to that right?

	▲	bluecheese452 21 minutes ago \| parent [-]
		If he goes against what they want absolutely. If he introduced a 4 day work week for example he would be in big trouble.