Inflation going up means business profits going up which means workers' wages going down?

I think I may have found a contradiction in the business logic.<br><br>Businesses are supposed to **increase wages** according to inflation rate. If the businesses fail to adjust wages according to inflation rate, then effectively workers are paid less. For example, if inflation goes up 10% businesses are supposed to raise wages by 10% so workers are paid the same amount as they were before the inflation kicked in. If businesses fail to do so, then workers are paid 10% less than what they had before inflation.<br><br>On another hand, the corporate profits are higher if they are paid more but pay less to workers. If a business pays 10% more to workers, it means lower profits for shareholders. I assume the businesses are legally required to serve the shareholders' interests first. In that case, they are legally required to keep **profits high** and **wages low**.<br><br>Now the question is, what takes precedence? Adjusting wages according to inflation which means paying workers the same amount, or keeping profits high which means effectively paying workers less?<br><br>Do businesses give precedence to their shareholders' interests than workers' living standards?