Tuesday, October 11, 2011
There's good companies, and bad companies
Economy plays a huge role in human rights, and corporations influence the economy greatly. Corporations can conduct business in two ways: in a cost-minimizing economy, and in a market-building economy. Cost-minimizing strategies are generally tougher on workers and will employ almost any strategy to increase profits. This includes horrible working conditions, outsourcing to foreign, cheaper workers, cutting corners on costs, etc. Cost-minimizing corporations do not plan for a better future, and some examples of such corporations are Nike. Market-building strategies take into account the future of humanity and human rights, and will often spend money on world-building programs like green technologies, worker's rights, and support for thier native country and people. Such corporations actually care about serving thier investors and bettering the world.
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Wow every post in here, which is Trippe's, yours, and mine (as of right now) all mention NIKE as a cost minimizer. I guess they should be a little more discreet when they hire little children to make their shoes. Jokes aside, you had a very valid description of what market building and cost minimizing strategies encompass.
ReplyDeleteVery good points Drew, very true. However, I don't think it's all that black and white. There aren't "good" and "bad" companies. Most companies are dishonest about a lot of their businesses practices or their business models, simply because they want to sell their product. Talk to you later, bye :|
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