This post has been contributed by Professor Christopher Riley, Module Convenor for Company law.
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Stories, news and updates from our team and our students
This post has been contributed by Professor Christopher Riley, Module Convenor for Company law.
Even large institutional investors need profits. These investors tend to be pension funds and pensioners need their investments to yield returns, which will protect their money at least from inflation.
Interesting insight and helpful to understand why directors are not incentivized to work toward improving the global environment but at the end this is a catch 22 situation, a director may be successful in a short run but at a larger picture he/she, family, friends and society as a whole will suffer because his/her actions for the shareholders greed. Instead of making changes in company law legislators must provide valid reasons for directors through external pressures so they can justify the less profit and the measures, which ever may be, should be cross the board must not vary for company A to company B or to sector this to sector that. Profitability may dip but eventually investors will correct their expectations.