While a nice sound bite, do you have a better suggestion?

They could give stockholders veto power over product changes.

For starters, they already have.

Larry and Sergey have the majority voting power, and they have veto power over product changes :)

But that's probably not what you meant, so i'm going to assume you meant give "non-preferred stock holders veto power over product changes".

I'm not sure what this would accomplish, since institutional investors are not exactly who you want deciding the fate of products. Timeline wise, they are too short term of thinkers. Ethically, they are often very suspect. Strategically, most lack the knowledge to make the right decisions, and even if you gave it to them, they lack the experience.

What you are suggesting is almost identical to hiring a large set of outside consultants, bringing them into a well-functioning company, and letting them veto every product decision at the exec level or below. Worse the consultants would be experienced in say "women's shoes", and the company would be one that did something like "making airplanes"

I'm pretty sure i know where this leads, and it isn't "don't be evil" :)

I'm not sure I follow the logic. Large financial institutions hold a lot of stock, and their ethical track record is.. fraught.