When shareholders buy stocks in a company, they are owed a percentage of the profits. Therefore it is the company leaders’ fiduciary duty [s11] to maximize the profits of the company (called the Friedman Doctrine [s12]). If the leader of the company (the CEO) intentionally makes a decision that they know will reduce the company’s profits, then they are cheating the shareholders out of money the shareholders could have had. CEOs mistakenly do things that lose money all the time, but doing so on purpose is a violation of fiduciary duty.
When I read section 19.1.3 about fiduciary duty and the Friedman doctrine, it really makes me feel like users basically have no real power on platforms like Meta. Even if a CEO personally want to care more about user well-being or ethics, the system kind of punish them if profits go down, so they are pushed to choose shareholders first. It feels a bit scary that even “good intentions” from leaders are not enough, because the whole structure of capitalism is pushing in the opposite direction. It also makes me question if telling people “just choose better companies or better CEOs” is actually helpful, since the problem seem more like the rules of the game, not only the people playing it.