GERMAINE GREER: … and we’re actually forgetting something about them – the first responsibility of a company is to its shareholders. They’re not allowed to just give away money because it would be a noble thing to do, or because it would buy more hospital beds. In my view, there are too many hospital beds already.
This morning Tom Elliot is making the same point regarding Telstra:
BIG companies should not involve themselves in socially divisive issues like gay marriage, gender equality or religion — unless it’s good for profits.
Making a buck is, and should be, the primary aim of all businesses; they exist only to service customers, obey the law, earn a profit and pay regular dividends to shareholders.
…
I’m a shareholder of Telstra. And I resent the company making such moral judgments on my behalf.What I want Telstra to do is focus on flogging smartphones and broadband connections to as many Australians as possible. I also think it should prepare itself for the serious challenge internet TV businesses like Netflix are posing to increasingly archaic incumbents like Foxtel
(part-owned by Telstra).The telecommunications industry is both ruthlessly competitive, and largely populated by customers always happy to shop around for a better deal.
In short, Telstra has its work cut out staying ahead of rivals. Why waste time and money backflipping over gay marriage?
Here is Milton Friedman first making that point.