this post was submitted on 02 Nov 2025
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I'm not a lawyer, but this is how I read it:
TLDR: Their purpose is to create profits for shareholders and investors. They may choose how to do that, but they have an obligation to not intentionally reduce the corporation's profits or take actions that would deprive shareholders from accessing the profits.
So instead of "legally required to maximize shareholder profits" it's "don't intentionally lose or hide shareholdermoney."
The implication of that highlights exactly how disgusting corporate and industry lobbying is.
Increasing expenses to sway politicians on some topic is, in itself, an expense that runs contrary to the goal of increasing profits. Therefore, the only way it would be justifiable to spend money on lobbying is if there's a genuine belief or expectation that it will result in a return on investment that exceeds the amount spent.