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Does people cannot live without eating?

Posted by riskland on June 18, 2009

zhil-bil_pes_picture_043It was sleepless nights for me a couple of days ago.
More precisely it was 9 of June 2009.
I had tried to sleep diligently while I am bored with these forces and turned on TV.
There was an interview with an insurance company Ingosstrah CEO A.Grigoriev (let it be “Scrooge” ahead).
It was usual bored talking but I was caught in the one point suddenly.
This point is business social responsibility treatment.
Scrooge suggested that business social responsibility is equal to trying for profit maximization. It was seemed wrong for my opinion because usually we hear other one.
It’s wide accepted that business must takes its responsibilities for unemployment, discrimination, pollution etc. If it is articulated roughly and shortly than any business has many stakeholders and their incentives fairly demand the attention too. And the many social entities are considered as business stakeholders.
The first thought is that Scrooge doesn’t know any important themes. But it is very doubtful suggestion. It had urged me to use World Wide Web as a referee and make the searching.
Ahem…
The second thought appearances after this searching. May be Scrooge is a fun of Milton Friedman famous article “The Social Responsibility of Business Is to Increase Its Profits”?
Let’s compare the three opinions – Friedman, T.J. Rodgers, John Mackey.
=============================================================================
1. Making Philanthropy Out of Obscenity (Milton Friedman).
The practice (philanthropy) makes sense only because of our obscene tax laws, whereby a stockholder can make a larger gift for a given after-tax cost if the corporation makes the gift on his behalf than if he makes the gift directly. That is a good reason for eliminating the corporate tax or for eliminating the deductibility of corporate charity, but it is not a justification for corporate charity.
2. Put Profits First (T.J. Rodgers).
I am proud to be a free market capitalist. And I resent the fact that Mackey’s philosophy demeans me as an egocentric child because I have refused on moral grounds to embrace the philosophies of collectivism and altruism that have caused so much human misery, however tempting the sales pitch for them sounds.
3. Profit Is the Means, Not End (John Mackey, Whole Foods Co.).
Like individuals living in communities, businesses make valuable social contributions by providing goods and services and employment. But just as individuals can feel a responsibility to provide some philanthropic support for the communities in which they live, so too can a business. The responsibility of business toward the community is not infinite, but neither is it zero. Each enlightened business must find the proper balance between all of its constituencies: customers, employees, investors, suppliers, and communities.

While Friedman believes that taking care of customers, employees, and business philanthropy are means to the end of increasing investor profits, I take the exact opposite view: Making high profits is the means to the end of fulfilling Whole Foods’ core business mission. We want to improve the health and well-being of everyone on the planet through higher-quality foods and better nutrition, and we can’t fulfill this mission unless we are highly profitable. High profits are necessary to fuel our growth across the United States and the world. Just as people cannot live without eating, so a business cannot live without profits. But most people don’t live to eat, and neither must businesses live just to make profits.
=============================================================================
I like Mackey’s view.
Scrooge likes Friedman’s view.
I think he likes T.J. Rodgers really but the rest of political correctness won…

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One Response to “Does people cannot live without eating?”

  1. monella said

    too advanced for me that have been sitting here in the bank all the weekend! ochen mnogo bykovok, ne osilila! chyvstvyu sebja blond and silly! ti takoi vymnii papyssik, vot kyda mne do tebja! tebe bi tochno ponravilos v NHH, tam lubjat rassyzhdenija na takie temi i imenno s takim podhodom, a mne vot ne katit vashe!sdelau istcho podhod k tvoei statje popozhe, no cheta shaz tak y menja azh iskri posipalis na eto gljaduchi! ny ti tochno megamozg! do prostix smertnix takoe v zhzni ne doidet! mamyssik , prava – moi papa – inoplanetjanin:)

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