Considerate Profit -
“In a free enterprise, private property system, a corporate executive is an employee of the owners of the business. He has direct responsibility to his employers. That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible…”
“Of course the corporate executive is also a person in his own right…he may feel impelled…to devote part of his income to causes he regards as worthy…if these are ‘social responsibilities’, they are the social responsibilities of individuals, not of business…”
Milton Freidman New York Times Magazine 1970
So if he feels like it he can get a bit philanthropic…no thank you…this is the 21st Century not Victorian England…
This tripe, posing as rational argument, explains why we find ourselves in such an economic and socially divisive mess. Over the course of the last 40 or so years we have been subjected to unfettered free market capitalism. In its purest form capitalism as a business model revolves around exploiting an underpaid workforce whilst at the same time overcharging the consumer to maximise profits. With the advent of global free markets it’s now easier than ever for big business to move its operations anywhere in the world.
This type of capitalism, practiced in many developing countries, is a form of economic and cultural imperialism. These countries have a cheap labour pool and fewer labour protections and thus their citizens are at a higher risk of exploitation by multinational corporations. The exploitation of ever shrinking pools of cheap labour, with no regard to maintaining consumption, can only lead to market failure…then what…?
The spin off in this country means less work for us, as the corporations will happily uproot whole businesses abroad, putting thousands of people out of work in one stroke. They will happily shaft the country they live in, after all, profit is king…
The only way to protect society is to impose rules on the neo-
The solution is Social Capitalism as practiced by countries such as Denmark.
It is mandatory for the 1,100 largest Danish companies, investors and state owned companies to include information on corporate social responsibility in their annual accounts.
Social capitalism aims to control the corporate boyos in such a way that society benefits as a whole. It takes a holistic approach to the concept. A business does not exist in a vacuum as posited by the likes of Freidman, it exists in and is part of society. It cannot pretend that its policies have no impact, good and bad, on the world it operates within and should not be allowed to do so….
Governments must step in and impose regulations on the business world before we have another Banking crisis and the world is plunged once again into chaos because of the greed of a few powerful bosses.
Left to their own devices, businessmen will never consider the concept of ‘considerate profits’ as anything other than plain stupid, therefore we need to
impose those concepts upon them for the good of all, not just the few..
The Company as an entity was set up to remove the responsibility of the owners to work to a set of morals and ethics…the companies sole purpose was to maximise profits at all times regardless of the cost to society …only an individual could exercise a social conscience…if he or she wished to make some sort of philanthropic gesture then that could only be done as an individual…
Brilliant…make billions by ripping off society and destroying the lives of thousands…then lob in a few quid when you need a knighthood…