Originally posted by BigGun
It is the shareholders that own the company. Without shareholders, there would be no company, no jobs to be outsourced. Why do you think people are shareholders of a company? For the benefit of society as a whole? To be good samaritan & to help people maintain high standards of living? Don't be naive. People buy stock & risk their capital in order to earn returns. Pure & simple, stock holders are looking to make money. Nothing wrong with that. Without their capital there is no company or jobs. Increased earnings are a driver in stock returns & profits.
Right, there is nothing wrong with that, but sometimes when those investors push for changes to get more money out of their stock right now, and do not worry about the value in 6 months they cause problems for the company and the customer.
Profit should not get in the way of product quality within reason.
(if they did it right, or let the company be run the right way instead of trying to strangle every cent out for profit this quarter, they might even make more money in the long run.)
An example of this would be.
You have a software product. It is not ready to ship. You ship it anyway because if you do not get it in the channel for Xmas, you won't make your goals this quarter and the board will go for people’s heads.
You ship, you make some money. But lose many customers pissed about your product having issues.
If the company waited until they had a solid product, they would have picked up more customers and made more money.
(There is more to it then that of course, you have to look at the whole development cycle to see how you got there in the first place. But my whole point is companies make stupid decisions based on making money in the short term to please there investors. In the long run it cost them money in return and lost customers)
It used to be said the customer is always right, well thats not true anymore if making it right for the customer cost investors of few cents on their stock.
Taking ownership in something should mean you want it to be good at what it does, not get every pennie you can strangle from it and move on.