Revised Commercial Law aims to align shareholder and company interests, facing opposition from business community amid changing perceptions of corporate ownership and shareholder capitalism
#YonhapInfomax #RevisedCommercialLaw #ShareholderCapitalism #CorporateGovernance #BusinessOpposition #DemocraticTransition #Economics #FinancialMarkets #Banking #Securities #Bonds #StockMarket
https://en.infomaxai.com/news/articleView.html?idxno=56939
[Nam Seung-pyo's Sophistry] Why the Revised Commercial Law Reminds Me of 30 Years Ago

Revised Commercial Law aims to align shareholder and company interests, facing opposition from business community amid changing perceptions of corporate ownership and shareholder capitalism

Yonhap Infomax

#Economics

A fitting and compelling swansong for #ShareholderCapitalism, as well as a dismantling of #StakeholderCapitalism by #CoryDoctorow (@pluralistic .)

👉 I strongly recommend using the essay formatted, long version in сonnection with a #ScreenReader.👈

https://mamot.fr/@pluralistic/113158693528976262

Cory Doctorow (@[email protected])

Attached: 1 image Today's threads (a thread) Inside: There's no such thing as "shareholder supremacy"; and more! Archived at: https://pluralistic.net/2024/09/18/falsifiability/ #Pluralistic 1/

La Quadrature du Net - Mastodon - Media Fédéré

@kentpitman #ShareholderCapitalism is a problem, but stakeholder #capitalism isn't the answer. One problem is that the stakeholder theory violates democratic principles. The democratic principle is that the people governed in or by an organization should have positive decision-making control rights over the organization. The workers are the ones that are governed by management not all stakeholders. Stakeholder control is a power grab for management. See: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3584245

@bicmay

@bicmay

Our capitalist plutocrats accord myopic attention to the current day's stock price and the coming quarterly bottom line. The long term doesn't interest them because companies owe their full and directed allegiance to shareholders, even though those shareholders might cash out at any moment. So the cost of bad decisions is, you might say, an internal externality, or perhaps a temporal externality, thrust upon tomorrow's stockholders by today's, who try to cash out before prices dive.

This article is an example of that, but hardly an isolated one.

Capitalists see robustness, safety, redundancy, stability, jobs, work/life balance, equitable pay, sustainability, public health, the environment, and even human rights as superfluous concerns, mere sources of economic inefficiency to be hammered out if they seem to impinge on profit, their sole concern. Much of the conservative agenda is about this kind of sociopathy.

Switching to stakeholder capitalism instead of shareholder capitalism would help. It would bring more voices into the discussion. Representation matters.

#capitalism #CashingOut #externalites #ShareholderCapitalism #StakeholderCapitalism #priorities #power #electricity #LateStageCapitilism #sustainability

Fiduciary Duty vs the Three Laws of Robotics
(why coporations are "legal sociopaths")
https://netsettlement.blogspot.com/2009/02/fiduciary-duty-vs-three-laws-of-robotics.html

Losing the War in a Quiet Room
(overview of shareholder vs stakeholder theory)
https://netsettlement.blogspot.com/2012/01/losing-war-in-quiet-room.html

Fiduciary Duty vs. The Three Laws of Robotics

An essay on how rules of Shareholder Capitalism veritably require that corporations, so-called "legal people", behave like "legal sociopaths".

@twrling

Economics is a system for distributed management of societal priorities. If the economics do not favor a system that coordinates essential information about an existential threat to humanity, it's worth considering whether the priority management system itself is doing its job of helping to properly prioritize what society needs.

Seeing societies be told that we must prioritize personal enrichment of the rich, rather than survival of the species "because the budget demands it", is very troubling.

Budgets are tools. Our monetary system is a tool. It is critical to regularly ask whether tools are functioning on our behalf as a society, or whether, for example, tuning is required.

Taxes are one way we tune things. When people disapprove of taxation per se, without acknowledging that varying taxation has differential effects on the way power is distributed in our society, favoring some groups over others, they may just saying that they favor the power structure status quo, or they like the way lower taxes favors their own group.

Right now, society's power structures are favoring those who are killing the planet. Perhaps some reshaping is in order. Listening to the whining of those who are leading the charge toward the climate cliff, hearing about their fears of being disempowered, may not be our best choice.

Moving to stakeholder capitalism from shareholder capitalism is another approach.

I am not here advocating any specific action, just review of cause and effect. Something needs to be done, and that something is not passive inaction and acquiesce to negative societal outcomes for the sake of ever more decadent profit flowing to the already lavishly rich.

Further enriching the rich is sometimes tenuously justified on a theory that their wealth is proof that they have done well by society and so these people specifically should be trusted to do more. But is that in fact what's in play here?

- - - - -

Further reading:

Tax Policy and the Dewey Decimal System
https://netsettlement.blogspot.com/2009/02/tax-policy-and-dewey-decimal-system.html

Losing the War in a Quiet Room (on shareholder vs stakeholder capitalism)
https://netsettlement.blogspot.com/2012/01/losing-war-in-quiet-room.html

#economics #taxation #capitalism #LateStageCapitalism #priorities #society #StakeholderCapitalism #ShareholderCapitalism #climate #collapse

Tax Policy and the Dewey Decimal System

A look at how to structure tax policy through an unusual lens: how the Dewey Decimal System used by libraries is arranged.

@RichardAshwell @LordCaramac @MattMastodon @breadandcircuses

I doubt there can be a "properly modeled" sense of human psychology in the face of mass famine in parts of the world unused to that.

I have to believe this will follow lines like climate science did where researchers/modelers are of the opinion that "conservative" means you don't model anything you just have a hunch about and you only include effects you can prove.

Consistently for climate scientists this kind of conservatism has favored preserving individual careers at the expense of saying just how badly these things can go, and I expect the same in these other fields.

So pardon me if I don't rely on proper modeling and rely instead on my own sense of how ugly things can quickly get with the wrong set of circumstances, as is happening with the fall of democracy. What we imagine to be stable systems have fewer safeguards than we imagine and perform very badly when ideal conditions are not met.

This is partly a direct consequence of the fact that capitalism cannot see beyond the end of its nose. I have many times observed in recent years that many celebrated gains use simplistic metrics to trade away safety, robustness, redundancy, environment/ecology, and social justice on a theory that price optimization is the only goal.

In effect, the system rewards fragility and cruelty and other ills if it yields short term gains because it assumes one can always cash out and move on to other things if that strategy fails, and there is no accountability for system-wide fragility such as we saw in covid, where masks, lysol, toilet paper, vaccines, etc. were in short supply when capitalism promises to do so much better than socialism by closing its eyes to obvious issues and assuming profit will win out.

Capitalism not only doesn't value safety and robustness, seeing any robustness against issues that haven't occurred recently as economic inefficiencies to remove, but it also does not value completeness. Profit is maximized by figuring out who it's economical to serve and knowing who is too expensive to serve.

I expect this will be a bad model for food shortage during famine. I see us shrugging off such issues from a government planning point if view, preferring to "leave it to markets". And I don't see how markets will do more than focus on price gouging, shich will lead to civil unrest if the missing item is an essential like food or water.

Once the public realizes that capitalism has no plan for regular people, a tipping point is reached where panic sets in and all processes start to be chaotic. Even small perturbations in normal will upset supply chains, which are ridiculously full of single point of failure and reliance on supplies from distant locations as if transport was free and nations don't ever shut borders out if either paranoia or spite or trade imbalance leverage or other factors.

When something like wheat fails, will meager yields be merrily shipped to foreign lands or held for domestic use? Will multinats be able to continue to assert dominance or remote ownership across national borders? Will militaries be invoked? By whom against whom? How does one "model" these questions?

I didn't read the reports you cite but unless you tell me what is modeled is a very stark and honest view of what capitalism, selfishness, and nationalism really does from a qualitative modeling standpoint, not from an extrapolation of past effects in questionably similar situations, I don't see how to trust it. I expect someone would lose their job or peer review respect if they modeled these things as likely or even possible. Better to rely on things for which there is data. But that will not model "black swan" events.

I've also not fully read all of Taleb's efforts in the antifragile space, but my impression is he says don't bother modeling rare events you don't know the probability of, and instead build structures robust against chaos. We've not done that.

We're entering a new space we have not experienced where externalities aren't being tracked but do finally matter in ways i personally doubt any formal modeling will get right. They'll expect "getting it right" to be a conversation that can gradually converge over time in academic timescales we no longer have.

It matters to see potential severity more than it matters to be right on detail, like you'd model a war. Capitalism hates such planning because they think it overspends and cuts into quarterly profit.

https://netsettlement.blogspot.com/2019/09/losing-ground-in-environment.html

#capitalism #climate #collapse #modeling #society #ShareholderCapitalism #ShareholderCapitalism

Losing Ground in the Environment

Essay on how we can't still see the world as an infinite resource. Things are interconnected and finite, so we need a fresh mindset when planning.

The wretched state of Thames Water is one of the best arguments for public ownership we have

Water privatisation in England and Wales has achieved just one thing: the enrichment of executives and overseas shareholders, says Mathew Lawrence of the thinktank Common Wealth

The Guardian

“Ultimately every quarter the executives at Google meet the board and they need to be reporting up into the right projections on growth and revenue.

Those are the key objectives of shareholder capitalism.

If Sundar [Pichai, Google CEO] went to the board and said:

“Morally we need to leave $10bn on the table. Let Microsoft have this contract,” he’d be fired in an instant.”

- Meredith Whittaker, @signalapp CEO

https://amp-theguardian-com.cdn.ampproject.org/c/s/amp.theguardian.com/technology/2023/jun/11/signals-meredith-whittaker-these-are-the-people-who-could-actually-pause-ai-if-they-wanted-to

#moralism #shareholdercapitalism #shareholderprimacy

Signal’s Meredith Whittaker: ‘These are the people who could actually pause AI if they wanted to’

The Guardian

@FantasticalEconomics @jwcph @breadandcircuses

There's also a "capitalism optimism" that is not well-earned, a belief that (a) can happen implies will happen if needed because (b) capitalism efficiently discovers need and connects it with supply. That has been the narrative all along, and it's just observably false.

During covid, capitalism neither efficiently nor in some cases really at all managed to connect the need for masks, vaccine, lysol, toilet paper, etc. with sufficient, timely, and cost-effective supply. There could not have been a clearer example of just how dismal capitalism rises to such an occasion. Capitalism is arbitrary, extractive, and unconcerned with completeness.

Indeed, it is all about discerning who can and should be simply ignored based on no other criterion than whether serving them is going to maximize profit. This is the reason never to claim government (which has a responsibility to all in a fair way) should be run like a business (which operates under a responsibility to no one with no fairness constraints other than those imposed by laws set by those reps who are bought and paid for by successful business execs, not the people they are said to represent).

We should aggressively watch for confusions of "can" and "will" in conversation about technology and insist that any reliance on "can" is accompanied by strong, non-reductionist legislation.

(Reducing a social problem to money or carbon credits is what I mean by reductionist. That will end up gamifying things and losing track of the original problem.)

#capitalism #ShareholderCapitalism #Markets #Society

@FantasticalEconomics @jwcph @breadandcircuses

For what it's worth, I think JW is the one making the most coherent points here, by quite a large margin.

Whatever theoretical claim can be made about technology bettering things is dim when seen in context because it's really clear that markets love an externality, and so if someone bent on growth can say that it's possible that somehow that growth can be compensated for, then that compensation becomes the responsibility of someone else or the market. The problem is that unless people are held to account in that, the theoretical balance that Kyle is claiming has about zero chance of happening. And we have far too little time to be waiting on such miracles.

In practical terms, which is all we can focus on in the extraordinarily limited time humanity has left on earth, it's more correct to say that the theoretical options Kyle sees are just smokescreen that will enable continued ills. Maybe your intent is better, Kyle, but if so it's blinding to to a practical effect that is likely VERY negative.

The problem is simple: We have an addiction to growth. We are practiced at it. We enjoy it. We have developed habits around it. But it is killing us. None of that will be fixed by creating theoretical discussions about how there's a world in which reform is not necessary. There might be such a world. But if we are not making plans to get there, taking steps aggressively that get us there within our window of healthy life, then the theoretical case is irrelevant. We're addicts who have rationalized not quitting.

But also, with every crank of the winch, creating more reliance on tech, we also create potential energy waiting to snap if something goes wrong, something slips, and the system unwinds. If an acre of land can support 10 people but we find tech to have it support 100, that's great but if that acre of land is lost to a storm, let's say, then 100 people will starve, not 10. Every time we rely on tech to help us live past capacity, we up the stakes that way. They noticed a similar thing in airplanes as they figured out how to pack them tighter and tighter: when a crash happens, more die.

So I decided at some point that the test of carrying capacity of the planet is not the steady state on a good day kind of measure, but rather the ability of that system to withstand crashes, the temporary unavailability of parts of it, etc. We are not prepared for disaster. Shareholder capitalism treats robustness and sustainability as economic inefficiencies to be removed because they generally don't show on the quarterly bottom line except as an expenditure with no benefit. It's hard to quantify a counterfactual.

We need metrics not of Gross Domestic Product but of Gross Domestic Sustainability, of getting ourselves to a system that is robust against the kinds of catastrophes that are potentially forseeable to encounter. Economic, political, and weather/climate. A company or product that does not measure up as highly sustainable and robust against potential problems should be taxed very heavily so that the state can make preparations in lieu, so that there is no way for a company to make money by shortcutting sustainability.

Presently the reason people like Trump so much is the sugar high he creates in businesses by allowing them to pretend to profit by eliminating safety and sustainability and other environmental "red tape" that he sees as superfluous. This serves a culture in which profits are regularly harvested from companies into private bank accounts that cannot be drawn back out of when we see what a horror these profiteers have left us. They are racing to suck all the value out of the world before it collapses.

For a brief parable on this, see my 2009 essay "Hollow Support". It's not about climate, but about how markets under shareholder capitalism like to invest and what the consequences of that are:

http://netsettlement.blogspot.com/2009/03/hollow-support.html

#Capitalism #ShareholderCapitalism #HollowSupport #Climate #Consumption #Growth #DeGrowth #Economics #Sustainability #Environment

Hollow Support

A short parable offering a metaphorical framework for understanding how collapse is invited by systematic elimination of safeguards.