It reduces shareholder confidence in the organization as a means of value creation.
IPOs are usually undertaken by one or more investment banks. The investment bank arranges for the listing of shares on one or more stock exchanges. Through this process, colloquially called floating or public, a private company turns into a public company.
Public companies contribute to the Black Swan event because they define value creation as too narrow in terms of financial performance.
The corporate Social Responsibility (CSR) stakeholder model considers a public stock company to be a citizen of the society in which it operates, and like all members of society, the company has the usual ethical obligations that all citizens obey. You have to take responsibility.
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