Apple tells short-term investors that they're no longer wanted

Signal of change / Apple tells short-term investors that they're no longer wanted

By Jacob Park / 02 Mar 2014

In March 2014, while defending his company's investments in renewable energy, Apple CEO Tim Cook told shareholders, “If you want me to do things only for [return on investment] reasons you should get out of this stock."

 

Cook was responding to criticism from the right wing National Center for Public Policy Research (NCPPR) that by investing in measures without a clear return on investment (ROI) he was undermining the financial interest of Apple's shareholders.

 

“When we work on making our devices accessible by the blind, I don’t consider the bloody ROI [either],” Cook added, explaining that immediate profitability is not the only factor in Apple's corporate strategy. 


Image credit: Mark Mathosian / Flickr

So what?

By taking this stand, Tim Cook is one of the few CEOs of a major American company to refute the fallacious assumption that publicly traded corporations have a "fiduciary responsibility" to consider only profits when setting corporate strategy.

 

This mistaken understanding has often stood in the way of corporations acting on non-financial imperatives such as environmental and social concerns. Cook's statement could embolden other senior executive to take a more expansive and responsible view of their scope of action.

 

 

Sources

http://www.nationalcenter.org/PR-Apple_Tim_Cook_Climate_022814.html

 

http://www.theguardian.com/environment/2014/mar/03/tim-cook-climate-change-sceptics-ditch-apple-shares

What might the implications of this be? What related signals of change have you seen?

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