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> They are built to seek profit. If they obey the law, it is only because obeying the law maximizes profit. If they are moral, it is only because morality maxim
by king_jester 13y ago
> They are built to seek profit. If they obey the law, it is only because obeying the law maximizes profit. If they are moral, it is only because morality maximizes profit. On the other hand, if breaking the law maximizes profit (e.g. because enforcement is lax or penalties are low) then that's what they'll do. Likewise, if immoral acts make the most money, that's what they'll do.
This has been demonstrated to not be true. Decision makers at corporations are not rational actors, they may choose to pursuit business plans and take courses of action that actually harm profit. We have seen in the banking and housing collapse that there are those that knowingly seek their own personal profit at the expense of others, including the very businesses they work for.
> What Hollywood gets wrong is that corporations aren't intentionally evil. There's no CEO sitting in his office laughing maniacally about how his new project is going to kill widows and orphans. Hollywood always wants a villain, but in this case there isn't one. Villainy falls out of the corporate structure and lots of employees just doing their jobs to keep bread on the table.
This is has also been demonstrated to be false. While certainly the very nature of corporations creates negative externalities, we have had plenty of examples of high level executives that pursue a course of profit that knowingly endangers and harms others and may ultimately even be ruinous to the business itself.