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It's not only about the money, but it's still about money. No matter what the company's 'mission', anything that changes the distribution of equity or profits w
by gamble 16y ago
It's not only about the money, but it's still about money. No matter what the company's 'mission', anything that changes the distribution of equity or profits will bring out that truth awfully quick.
- jacques_chester 16y agoAn insight gleaned from Donna Meadows is that profit is not the purpose of a company's existence. Profit is merely survival, it's what facilitates the company staying "in the game". Her view is that the purpose of companies is to grow.
- nostrademons 16y agoThat observation was made by Peter Drucker, fairly soon after WW2. Profit is the cost of continuing to do business; it's necessary to ensure that you are allocating your efforts efficiently, but is not the intrinsic raison d'etre of a corporation. His view was that the purpose of companies was to serve a social purpose. The purpose of Google is so that people can find information. The purpose of Microsoft is so that people can use their computers. The purpose of Merck is to keep people healthy. I like this viewpoint a whole lot better than Milton Friedman's corruption ("the purpose of a corporation is to increase shareholder value"), where an abstract measuring stick necessary to ensure corporate accountability somehow became the whole principle that society was organized around.
- jacques_chester 16y agoThanks for correcting me.