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No. of Recommendations: 5
Maybe so, but the bigger corps are traded on the markets. Their primary responsibility is to shareholders. And shareholders mostly care about the bottom line. If the stock price isn't going up, you could find yourself off the Board.

Corporations are generally pretty good at responding that that. The CEO may support many charities, and care for workers, but in the end he works for shareholders who don't know Bob in the cube next to the Coke machine, whose wife just had a baby. That the CEO knows that doesn't usually have an impact.


From my experience in a Very Large Corporation (which I'll generalize from):

1) When a Board vacancy occurs, the Board creates a nominating committee. It is my understanding the CEO/Chair pretty much controls who'll be on it and has the major (veto?) role in the outcome. The nominees are place on the ballot. Stockholders can vote "For" or "Abstain", with no option for write-in candidates. As a result, stockholders have little to say as to who is on the Board.

2) Stockholders can try to exert some influence through resolutions but (at least in my corp.) those were only treated as non-binding suggestions. If passed, nothing needed to be done nor did any progress have to be reported back to stockholders.

3) The Board sets the terms of the contracts and evaluate the performance of the C-level folks. Ultimately, the Board is their customer and boss, NOT the stockholders.

3a) The purpose of the corporation is NOT to "make money". The purpose (and strategy for achieving it) is based on what the CEO is accountable for in his/her contract.

3b) We each need to breathe in order to live, yet nobody would say their *purpose* in life is to breathe. Corporations are like that with money; it's a condition for existence, but not a purpose.

=== One person's opinion; YMMV.
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