Shareholder versus Stakeholder Capitalism

[GS Ragtop]

Originally Posted by RedLS1GTO

To portray themselves in a positive light and in turn increase profits.

I agree. Producing a profit also means generating and protecting a positive brand image. I do think some companies (public) take it too far, though. If I was a shareholder in those companies, I'd complain to the BOD.

[Giraffe (He/Him)]

Originally Posted by RedLS1GTO

To portray themselves in a positive light and in turn increase profits.

You see this as a bad thing?

[RedLS1GTO]

Originally Posted by GS Ragtop

I agree. Producing a profit also means generating and protecting a positive brand image.

... the ones at the top of this list want to stay there.

Best Global Brands Ranking for 2010

[RedLS1GTO]

Originally Posted by Thomas

You see this as a bad thing?

Who said it was a bad thing?

You asked why they did community service. I answered.

[SnikPlosskin]

Dear mr cool,

You are clueless. Have you heard of a social enterprise? It's a company with a duel bottom line: social good AND making money.

In fact, Joe Punchclock, I just started one. And guess where the money is coming from? You know, the money needed to create all those jobs and do good work? Private equity investors.

By April, I'll be employing about 30 people (direct and contract). Without the support of successful partners (1% types) I'd be providing zero jobs.

Your generalizations are moronic.

[Giraffe (He/Him)]

Originally Posted by RedLS1GTO

Who said it was a bad thing?

You asked why they did community service. I answered.

Nobody said it was bad thing I simply asked a question. Answer please.

[Giraffe (He/Him)]

You are clueless. Have you heard of a social enterprise? It's a company with a duel bottom line: social good AND making money.

IMO, a business exists solely to generate return on capital by effectively satisfying its customer's needs.

Maybe you should include GS Ragtop in your finger pointing.

[RedLS1GTO]

Originally Posted by Thomas

Nobody said it was bad thing I simply asked a question. Answer please.

What are you even asking?

If I think a corporation doing community service is a bad thing? Of course I don't. Not sure what you are getting at.

[RedLS1GTO]

What you completely fail to see is that the community service done by corporations is part of capitalism at it's finest. A company succeeds or fails on it's own merits. Public image is a large part of that.

To be successful a company has to portray itself in a positive light to the public which leads to outreach programs, community service, etc. That positive portrayal also extends to it's employees which leads to higher pay, more benefits, etc, etc. If a company wants to remain profitable, they have to have the best employees. To keep those employees they do what is necessary. They increase the comfort of their facilities. They increase pay. They give more incentives. They make a better, safer, workplace. They make employees WANT to work there.

The problem with liberals is that they think that without them and their guidance the World is incapable of functioning. Rather than letting businesses become profitable and in turn doing good in the community and good for their employees, liberals feel that they have to FORCE them to do it their way. It simply doesn't work like that.

How many companies do you think have community service programs in socialist nations? I'm guessing not many.

[Giraffe (He/Him)]

Originally Posted by RedLS1GTO

What are you even asking? If I think a corporation doing community service is a bad thing? Of course I don't. Not sure what you are getting at.

With all due respect, it's a relatively straight forward question. Why are you struggling with it?

I'm getting at this:

IMO, a business exists solely to generate return on capital by effectively satisfying its customer's needs.

I disagree with this statement. I was curious as to your opinion.

[Giraffe (He/Him)]

What you completely fail to see

I beg your pardon? Don't assume what I understand and don't understand. For someone so enlightened, you apparently struggle with comprehending what I posted.

All I did was pose a question. It wasn't a challenge.

[RedLS1GTO]

Originally Posted by Thomas

With all due respect, it's a relatively straight forward question. Why are you struggling with it?

What part of this did you miss?

Originally Posted by RedLS1GTO

If I think a corporation doing community service is a bad thing? Of course I don't.

Seemed like a relatively straight forward answer to me.

Originally Posted by Thomas

I'm getting at this:

You do realize that it wasn't me that said that... right?

Originally Posted by Thomas

I disagree with this statement. I was curious as to your opinion.

The point of a business is to make money. Period.

EDIT: To the above statement I will clarify, the point of a publicly traded company is to make money (as was the original comment by GS). The point of a private company is whatever the hell the owner wants it to be.

[Giraffe (He/Him)]

You do realize that it wasn't me that said that... right

I recognize that, of course. But you do agree the statement that a business exists solely to generate return on capital by effectively satisfying its customer's needs.

So you disagree with Thrakk's business model correct?

You are clueless. Have you heard of a social enterprise? It's a company with a duel bottom line: social good AND making money.

[RedLS1GTO]

Originally Posted by Thomas

So you disagree with Thrakk's business model correct?

Unless I am missing something, he is talking about a privately owned company, in which this applies:

Originally Posted by RedLS1GTO

The point of a private company is whatever the hell the owner wants it to be.

...and yes, I applaud those who choose to take that path with their companies.

[Giraffe (He/Him)]

I agree wholeheartedly with most of your ideas. But here is where we split. If you are ABC123 Corp and you make $1 billion, you SHOULD, read that again SHOULD have some community focus.

They should not be FORCED by government to do this however.

[Loco Vette]

Originally Posted by Joecooool

Once Romney gets the nomination, Obama has a billion dollars in his war chest to talk about how shitbags like Romney destroy corporations and their employees lives for the sole profit of wealthy investors.

Obama is going to win in a landslide.

Exactly what does this have to do with the original post?

[RedLS1GTO]

Originally Posted by Thomas

I agree wholeheartedly with most of your ideas. But here is where we split. If you are ABC123 Corp and you make $1 billion, you SHOULD, read that again SHOULD have some community focus.

They should not be FORCED by government to do this however.

Yes, a company SHOULD have some focus on the community... but the fact still remains that for any publicly traded company, the bottom line is all that matters.

With that said, there aren't many Billion dollar companies out there that don't employ a lot of people. Even if they never actively seek out a "community" project, they are indeed helping it, simply by existing. They pay the people that in turn put the money into the community itself through spending. Businesses are what make the community.

A perfect example is of my hometown in Ohio. There was a large Ford transmission plant there (and not much else). As far as I know, Ford never did any sort of community charity type of projects. They existed simply to make money. It was a nice little town... until they closed. When Ford closed the plant, the local restaurants all went under without the lunch crowds. All but 1 local gas stations closed within a year. The YMCA closed because of the loss of all of the employees who were members. The median income dropped almost 30%. The bottom fell out of housing. The school system went from top 5 in the state to TERRIBLE in about a 2 year span because of cuts due to the loss of incomes... and the list goes on and on.

Ford was one of the largest contributors to the success of the town... without ever spending 1 penny on community service projects.

[NB2K]

the fact still remains that for any publicly traded company, the bottom line is all that matters.

100% fact.

This is one of the things that makes America great.

[GS Ragtop]

Originally Posted by Thomas

Maybe you should include GS Ragtop in your finger pointing.

Yup. Hope so. It's the foundation of capitalism -- it created the greatest economy in the world.

[repo]

Originally Posted by NB2K

the fact still remains that for any publicly traded company, the bottom line is all that matters.

100% fact.

This is one of the things that makes America great.

Exactly.



I am sure JC gives back to the community. Isn't he self employed with the Gov't his biggest account?