4 ms·

Companies only care for profit inasmuch we allow them to do so. A couple laws would deal with the problem quite rapidly but we first need to get this social-da

by eecc 9y ago

Companies only care for profit inasmuch we allow them to do so. A couple laws would deal with the problem quite rapidly but we first need to get this social-darwinistic neoliberal ideology out of our collective arses...

TeMPOraL 9y ago
What are the proposed "couple laws" that could help here? I fail to imagine how laws can convince a profit-maximizing entity to stop behaving like profit-maximizing entity.
- eecc 9y ago
  Well, just off the top of my head - IANAL not an economist - but it would suffice to change by law the set of stakeholders that have a legal say on the company and you’re done.
  - jpetso 9y ago
    Yeah! For example, the government could become a stakeholder in all companies to ensure that the populace's interest is taken into account in addition to profit... wait a second, that's what China's doing
    - emodendroket 9y ago
      I don't know how practical that is as a solution to social ills, but whether China is doing it or not doesn't really make it good or bad.
      - jpetso 9y ago
        Yes, that's true. What I wanted to point out is that a good idea in theory can quickly turn into an instrument that's being used for other purposes. China is a great example to be studied in this regard. Their changes do indeed ensure that profit will only be one of several considerations for company policies in China; this will undoubtedly result in more consumer-friendly corporate behavior, but it also tightens central control and is likely to deepen the kind of censorship measures that I personally would not want to wish on any person or company. Letting all people (of a given country) have a say means involving the government in which the company's headquarters are located. I'd rather not have national[istic] interests working from within companies, I feel laws and regulations are better suited to get a fair & transparent outcome. The German model that the sibling comment brought up is quite sane in comparison. It limits the stakeholders to only those who actively participate in production, which provides a kind of decentralization enforced by laws, but not directly steered by central interests. In terms of overall benefit to society, it's hard to argue against that model and it has served the Germans well. (However, it's also worth noting that having unions sit on the board doesn't prevent the company from making unfavorable decisions outside of the limited national and workplace-environment-related interest of the extra stakeholders, and often those changes can only be deferred / slowed down but not outright avoided.)
        emodendroket 9y ago
        I am not sure. I think the problem there is that the Chinese government is actively involved in enterprises, like censorship, that most of us would agree the government shouldn't be doing. I don't think it's anything inherent to the idea of fully or partially state-run enterprises (especially when you consider how many services have been degraded upon being privatized).
    - eecc 9y ago
      Yeah, why not... corporate has a powerful influence in the Government's decisions about the populace's interests, I don't see why not formally establish reciprocity. Besides, in Germany Unions such as IG Metal _do_ sit on the Board.
    - Chaebixi 9y ago
      > jpetso: Yeah! For example, the government could become a stakeholder in all companies to ensure that the populace's interest is taken into account in addition to profit... wait a second, that's what China's doing What kind of stupidity is this? The Chinese government is an authoritarian oligarchy and doesn't give two shits about "ensuring the populace's interest." It cares about maintaining its power and control. I think you need to cleanse yourself of your free-market straw men. It's not a bad idea for there to be more stakeholders in control of companies than just the shareholders. For instance, you could split the board between shareholders, employees, and customer representatives. That's not a radical idea either. IIRC, German unions have long had seats on their employer's board of directors, see: https://en.wikipedia.org/wiki/Codetermination_in_Germany https://en.wikipedia.org/wiki/Codetermination_in_Germany

by eecc 9y ago

TeMPOraL 9y ago

What are the proposed "couple laws" that could help here? I fail to imagine how laws can convince a profit-maximizing entity to stop behaving like profit-maximizing entity.

eecc 9y ago
Well, just off the top of my head - IANAL not an economist - but it would suffice to change by law the set of stakeholders that have a legal say on the company and you’re done.
- jpetso 9y ago
  Yeah! For example, the government could become a stakeholder in all companies to ensure that the populace's interest is taken into account in addition to profit... wait a second, that's what China's doing
  - emodendroket 9y ago
    I don't know how practical that is as a solution to social ills, but whether China is doing it or not doesn't really make it good or bad.
    - jpetso 9y ago
      Yes, that's true. What I wanted to point out is that a good idea in theory can quickly turn into an instrument that's being used for other purposes. China is a great example to be studied in this regard. Their changes do indeed ensure that profit will only be one of several considerations for company policies in China; this will undoubtedly result in more consumer-friendly corporate behavior, but it also tightens central control and is likely to deepen the kind of censorship measures that I personally would not want to wish on any person or company. Letting all people (of a given country) have a say means involving the government in which the company's headquarters are located. I'd rather not have national[istic] interests working from within companies, I feel laws and regulations are better suited to get a fair & transparent outcome. The German model that the sibling comment brought up is quite sane in comparison. It limits the stakeholders to only those who actively participate in production, which provides a kind of decentralization enforced by laws, but not directly steered by central interests. In terms of overall benefit to society, it's hard to argue against that model and it has served the Germans well. (However, it's also worth noting that having unions sit on the board doesn't prevent the company from making unfavorable decisions outside of the limited national and workplace-environment-related interest of the extra stakeholders, and often those changes can only be deferred / slowed down but not outright avoided.)
      - emodendroket 9y ago
        I am not sure. I think the problem there is that the Chinese government is actively involved in enterprises, like censorship, that most of us would agree the government shouldn't be doing. I don't think it's anything inherent to the idea of fully or partially state-run enterprises (especially when you consider how many services have been degraded upon being privatized).
  - eecc 9y ago
    Yeah, why not... corporate has a powerful influence in the Government's decisions about the populace's interests, I don't see why not formally establish reciprocity. Besides, in Germany Unions such as IG Metal _do_ sit on the Board.
  - Chaebixi 9y ago
    > jpetso: Yeah! For example, the government could become a stakeholder in all companies to ensure that the populace's interest is taken into account in addition to profit... wait a second, that's what China's doing What kind of stupidity is this? The Chinese government is an authoritarian oligarchy and doesn't give two shits about "ensuring the populace's interest." It cares about maintaining its power and control. I think you need to cleanse yourself of your free-market straw men. It's not a bad idea for there to be more stakeholders in control of companies than just the shareholders. For instance, you could split the board between shareholders, employees, and customer representatives. That's not a radical idea either. IIRC, German unions have long had seats on their employer's board of directors, see: https://en.wikipedia.org/wiki/Codetermination_in_Germany https://en.wikipedia.org/wiki/Codetermination_in_Germany