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Dodge v. Ford Motor Company, 170 N.W. 668 is a case in which the Michigan Suprem
Dodge v. Ford Motor Company, 170 N.W. 668 is a case in which the Michigan Supreme Court held that Henry Ford owed a duty to the shareholders of the Ford Motor Company to operate his business to profit his shareholders, rather than the community as a whole or employees. It is often cited as embodying the principle of “shareholder value” in companies.
The above case is a legal principle that still stands today. This case directly conflicts with the idea that companies should present a social good. In fact, if you do anything to diminishes the value of the company to the shareholders, the shareholders may sue you. If you are an executive in a business, where do you put your priorities? Take into consideration social justice issue and how they impact business in today’s business environment.
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