Posted by: Killthebank
« on: February 19, 2024, 09:16:20 pm »https://youtu.be/sZQAUCfU4Z4?si=JxUvLVdzVhTKVi86
Why companies focus on maximizing shareholder value instead of making quality products and maintaining a healthy/high morale workforce.
3:10 shows what the Dodge logo looked like back then. It explains a lot.
The TL;DW: Henry Ford wanted pay his workers high wages and sell his vehicles at low mark up. The other investors wanted more dividends. Ford was majority shareholder so he decided the direction of the company. Two brothers with the last name "Dodge" took him to court arguing the CEO must look out for that interests of the shareholders and won. The Dodge brothers started their own car company with the dividends from the Ford investments.
I don't see any opinions of Ford ln this site but I'd imagine they're mixed because his actions indicate he's a "Boromir". Manufacturing vehicles for mass use didn't help either.
Why companies focus on maximizing shareholder value instead of making quality products and maintaining a healthy/high morale workforce.
3:10 shows what the Dodge logo looked like back then. It explains a lot.
The TL;DW: Henry Ford wanted pay his workers high wages and sell his vehicles at low mark up. The other investors wanted more dividends. Ford was majority shareholder so he decided the direction of the company. Two brothers with the last name "Dodge" took him to court arguing the CEO must look out for that interests of the shareholders and won. The Dodge brothers started their own car company with the dividends from the Ford investments.
I don't see any opinions of Ford ln this site but I'd imagine they're mixed because his actions indicate he's a "Boromir". Manufacturing vehicles for mass use didn't help either.