Maximising profit is a matter of regulation rather than law

In response to Salisbury’s statement that “companies with a duty to maximise their return to shareholders can’t legally prioritise patient care,”1 Black writes that companies do not have a legal duty to maximise profit.2Black is of course correct, and it is helpful to have it stated, but although there is no legal duty to maximise profits, there is an onus on shareholders to do so, just as there is an onus on doctors to get blood pressure or cholesterol figures down. In a target culture—aka neoliberalism—this is a matter of governance rather than government, regulation (in this case informal regulation) rather than law. Just as a doctor would be viewed as being on shaky ground for not lowering blood pressure or cholesterol even though it might be good medical care not to do so, so too will shareholders opt for getting the numbers in good shape whatever this does to…
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