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Look up "Microsoft Recall" rule
(lemmy.blahaj.zone)
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this post was submitted on 23 May 2024
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Nailed it.
There's a legal obligation to extract the most value for your shareholders. This doesn't apply in sole proprietorships or partnerships with a more centralized ownership, where there's the realistic potential to have a conversation with one of the others (or internally) and say things like "let's do y, because doing x would be fucked, even if it made me more money."
In a publicly traded company, you can literally be sued by your shareholders for not putting profits first. This puts a background pressure that slants the odds in favor of enshitification. And whole industries are based on utilizing slightly uneven odds, so that has a real impact.
As you said - without being publicly traded, people can still be evil, but they aren't nearly as likely.