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After having seen the convulsions at Google, I think casting a company as having a "noble purpose" in the first place is a mistake. This branding attracts a cer

After having seen the convulsions at Google, I think casting a company as having a "noble purpose" in the first place is a mistake. This branding attracts a certain sort of person who thinks that it's more important to do "good" than it is to run an effective business. The business of a company is profit. Period. If you want to do "good", join a non-profit. Now, it's okay to say that good can happen as a result of profit-seeking. There's no need to be unethical about success. But you have to make it crystal clear to people from day one that the company exists to win.

codingdave 7y ago
Many leaders of corporations would put a finer point on that - the goal certainly is to profit, but not to the detriment of the broader society in which they operate, nor to their employees or partners: https://www.businessroundtable.org/business-roundtable-redefines-the-purpose-of-a-corporation-to-promote-an-economy-that-serves-all-americans https://www.businessroundtable.org/business-roundtable-redef...
throwaway2048 7y ago
A company exists for whatever purpose those that control it desire to (within the bounds of the law), including doing good at the expense of profit. The whole "Companies must maximize shareholder return" is a myth, because its a vague, unfalsifiable statement. More profit now could easily result in less profit, or no profit in the future.
jariel 7y ago
"The business of a company is profit. Period" This is absolutely not true. Only a narrow sect of Chicago-school types etc. really believes this. The purpose of a company is whatever the powers that be deem it to be. A company is made up of forces: Investors/Financiers, Executives, Employees, Customers and Suppliers. Each of those entities can have tremendous influence over the company to the point wherein the might even control it. For example, Unions wield incredibly power over the auto industry. It exists for them as much as it does for investors. Same for government. Most good companies have de-facto communitarian intentions far beyond the product and act as responsible members of the community in most regards. Corporate America today could probably lay off 1/3 of white collar workers without skipping a beat, but they don't - they're not as cold as you may imagine. Most established companies are 'gears in a bigger picture' and are mostly operational, not innovative, by that I mean they just have to 'keep doing what they are doing' to survive. It's rare that they have new ideas or modalities, that's generally the advantage of new companies. New companies have to 'fight for profit' at the start, so as to find their way into the gears of the economy at which point they have a special leverage/power, but a kind of responsibility as well.
clickhead 7y ago
Different companies can have different purposes and different sets of priorities and still be equally as successful. Just as a student's goal is technically to achieve the highest grades physically possible, that doesn't mean they won't benefit from skipping a few study sessions to mingle with other students and make valuable connections with other people.

codingdave 7y ago

Many leaders of corporations would put a finer point on that - the goal certainly is to profit, but not to the detriment of the broader society in which they operate, nor to their employees or partners: https://www.businessroundtable.org/business-roundtable-redefines-the-purpose-of-a-corporation-to-promote-an-economy-that-serves-all-americans https://www.businessroundtable.org/business-roundtable-redef...

throwaway2048 7y ago

A company exists for whatever purpose those that control it desire to (within the bounds of the law), including doing good at the expense of profit. The whole "Companies must maximize shareholder return" is a myth, because its a vague, unfalsifiable statement. More profit now could easily result in less profit, or no profit in the future.

jariel 7y ago

"The business of a company is profit. Period" This is absolutely not true. Only a narrow sect of Chicago-school types etc. really believes this. The purpose of a company is whatever the powers that be deem it to be. A company is made up of forces: Investors/Financiers, Executives, Employees, Customers and Suppliers. Each of those entities can have tremendous influence over the company to the point wherein the might even control it. For example, Unions wield incredibly power over the auto industry. It exists for them as much as it does for investors. Same for government. Most good companies have de-facto communitarian intentions far beyond the product and act as responsible members of the community in most regards. Corporate America today could probably lay off 1/3 of white collar workers without skipping a beat, but they don't - they're not as cold as you may imagine. Most established companies are 'gears in a bigger picture' and are mostly operational, not innovative, by that I mean they just have to 'keep doing what they are doing' to survive. It's rare that they have new ideas or modalities, that's generally the advantage of new companies. New companies have to 'fight for profit' at the start, so as to find their way into the gears of the economy at which point they have a special leverage/power, but a kind of responsibility as well.

clickhead 7y ago

Different companies can have different purposes and different sets of priorities and still be equally as successful. Just as a student's goal is technically to achieve the highest grades physically possible, that doesn't mean they won't benefit from skipping a few study sessions to mingle with other students and make valuable connections with other people.