John Maynard Keynes said it best: "Capitalism is the extraordinary belief that the nastiest of men for the nastiest of motives will somehow work together for the benefit of all."
"belief" is the key word in that quote. Capitalism's "belief" is far from reality, which is why regulation is so important. Unfortunately, although I celebrate B corporations, the B's make up only a tiny fraction of our corporate world.
Yes, it is entirely possible to run a business for a profit that meets the expectations of all stakeholders and not just Wall Street. We just need to seek out these companies and buy their products. I can (and do) buy Bob's Red Mill oatmeal at my local grocery stores. And King Arthur flour. Can you? If not, why not? Ask you grocer! We should be able to choose to support ethical businesses.
Corporate morality IS an oxymoron because the corporation as "person" is a legal fiction that denies responsibility for harmful behavior. Furthermore, the current econ system is based on endless growth on a finite planet. It also defines away devastation of human communities and destruction of ecosystems as irrelevant externalities. Until these basics are publicly shown to be the unsupported theoretical assumptions they are, the econopathy will continue.
Economic propaganda encourages us to conflate capitalism with private enterprise. They're not the same. Private enterprise is the privately owned production of physically real goods and services. Including co-ops and ownership by employees. In contrast, capitalism is the manipulation of that abstraction known as money, most often to the detriment of the producers.
The examples in this Lowdown post are wonderful; proof things don't have to be the way they are. We should support them! Notice this is a moral claim from a real person to other real people about being personally responsible, about taking into account how our actions affect others. Whereas the econ system is dominated by capitalist ideology based only on profit ('the utility function' in EconSpeak) and amoral otherwise. As such, moral arguments are merely another irrelevant externality.
What's even worse is the field is now dominated by the (U. of) Chicago School of Economics founded by Milton Friedman. Who approved of Pinochet and was a consultant to the Chilean govt. because "democracy interferes with Market efficiency."
Its great that even some big corporations are adopting this approach. Im surprised that Unilever owned Ben and Jerry's is one of them. We have a very successful co-op in my area, that operates in a similar manner. Thanks for posting some good news Mr Hightower, in the midst of the doom and gloom it's a welcome respite.
Thanks for this, Jim. I try to shop with corporate ethics in mind--I haven't bought a Hormel or Smithfield product for years--but it is often difficult to know which ones act responsibly and which do not. I remember very fondly driving Ben Cohen's "Pants on Fire Mobile" around Atlanta when W was running for a second term. It would be wonderful if some enterprising soul with good research and tech skills would start a site that informs of corporate behavior we should reward. Unless I am mistaken, Chobani Yogurt fits into the employee-conscious category as well.
I visited & toured New Belgium Brewery in Fort Collins, CO What a set-up! Employee owned, waste hops going to local farmers for feed, employee time off as necessary, even if no accrued vacation They work as a team-still make a profit (and shared)
Here in Washington State, Bluebird Grains Farm is just the sort of farmer-forward outfit you are talking about. Have them send you their emmer pancake and waffle mix and you can taste what I'm talking about.
I read all the comments and somehow nobody remembered to mention the animals many of these folks exploit by selling their parts for profit in their places of business. These creatures live their abbreviated lives in pain and squalor from start to finish so we Americans can have our 20 minutes of pleasure at the dinner table. Exploitation doesn't apply only to people. Some 10 billion animals who feel pain just like we do are killed every year just in this country, and not too many folks care. Sad.
Not to mention the wild animals that are driven out of their life supporting habitat by hydraulic fracturing and other who suffer from other industrial poisoning
Amen, Linda! You are so right! My comment was the tip of the iceberg regarding animal exploitation on our planet. They suffer so much, and so few care. Thank you for caring.
Thank you so much, Ann. I have tried to be a vegan for some 35 years, although it is impossible to be a total vegan in America, but I do the best I can. :)
If you look at the Harvard professor's study of wealth distribution, ideal, perceived actual and actual actual for 5,000 Americans, you can see that over 90% of these regular folks have an idea about what wealth distribution should be, about what they think it is and then, what it actually is. All these are quite far apart, but the ideal does make sure everybody gets enough to live decently and the wealthy are to have no more than 10 to 20 times what regular people have.
The problem, as laid out in 1916 by Lois Brandeis, and by Thomas Piketty in Wealth in the 21st Century, is that democracy and great wealth in the hands of a few are totally incompatible and that wealth generates more wealth (and power) than labor does, so the wealthy are always getting further ahead and buying and using the political power that always outdoes the will of the people. The only known cure for this is aggressive progressive taxation, so the wealthy are held to a limit and their extra wealth is taken and distributed to the good of everyone else. Otherwise, people are pushed in the direction of rebellion, as their lack of wealth forces them into hunger, homelessness and misery. The wealthy CEO of one of our least useful, most amoral companies, United Healthcare, which profits by denying needed medical and mental health care to people who need it, was murdered in New York two days ago by a man who left cartridge cases with "denial" etched on them. We don't know, but this sounds like a man who has reason to resent the stealing this company is engaging in. Perhaps his daughter died when needed care was denied coverage. One such woman, wronged like this by the death of her husband, took her lawsuit as far as she could, years ago, and wound up with no legal help at all, with the supreme court making 83% of decisions favor business, not people. Managed care insurance, taking billions in money that should be going to health care, hasn't given a raise to psychologists since 1985, has driven hospitals into bankruptcy, has denied essential care (heart transplants) and spent the money on a sculpture in the headquarters lobby (Linda Peno, 1996). Without strict government limits on wealth, it goes to the stratosphere while robbing everyone else ( 92% of the US population right now.)
Most of our investment portfolio is in women owned and socially responsible companies and ours is outpacing those that don't have this focus. Steady growth with fewer ups and downs.
HEB was our preferred grocer when we lived in Harris County (on the edge of Houston) and we left there in February 2003. So they've been at it for a while.
, How I wish more businesses would realize treating their staff with respect produces better work and good morale all around. The poor Wells Fargo people must have felt awful and depressed cheating people all day. Same for workers whose bosses cut corners and put out shoddy products. Oh, you can rationalize but you still feel rotten at the end of the day.
Thanks. I'm still learning in my old age! I didn't know about King Arthur's efforts, though I have heard of many of the others you mention as being, shall we say, ethical in their business practices.
John Maynard Keynes said it best: "Capitalism is the extraordinary belief that the nastiest of men for the nastiest of motives will somehow work together for the benefit of all."
"belief" is the key word in that quote. Capitalism's "belief" is far from reality, which is why regulation is so important. Unfortunately, although I celebrate B corporations, the B's make up only a tiny fraction of our corporate world.
Does seem unlikely, doesn't it?😵💫
Reading the lowdown has made me more careful of where I spend my money the last couple decades, thanks for being full of useful information
Yes, it is entirely possible to run a business for a profit that meets the expectations of all stakeholders and not just Wall Street. We just need to seek out these companies and buy their products. I can (and do) buy Bob's Red Mill oatmeal at my local grocery stores. And King Arthur flour. Can you? If not, why not? Ask you grocer! We should be able to choose to support ethical businesses.
Corporate morality IS an oxymoron because the corporation as "person" is a legal fiction that denies responsibility for harmful behavior. Furthermore, the current econ system is based on endless growth on a finite planet. It also defines away devastation of human communities and destruction of ecosystems as irrelevant externalities. Until these basics are publicly shown to be the unsupported theoretical assumptions they are, the econopathy will continue.
Economic propaganda encourages us to conflate capitalism with private enterprise. They're not the same. Private enterprise is the privately owned production of physically real goods and services. Including co-ops and ownership by employees. In contrast, capitalism is the manipulation of that abstraction known as money, most often to the detriment of the producers.
The examples in this Lowdown post are wonderful; proof things don't have to be the way they are. We should support them! Notice this is a moral claim from a real person to other real people about being personally responsible, about taking into account how our actions affect others. Whereas the econ system is dominated by capitalist ideology based only on profit ('the utility function' in EconSpeak) and amoral otherwise. As such, moral arguments are merely another irrelevant externality.
Absolutely agree. The corporation as a person is complete BS.
What's even worse is the field is now dominated by the (U. of) Chicago School of Economics founded by Milton Friedman. Who approved of Pinochet and was a consultant to the Chilean govt. because "democracy interferes with Market efficiency."
Yes! You have nailed it! Overturn Citizens United ! Get the non-living 'corporate persons' out of our elections and our government regulatory system
Its great that even some big corporations are adopting this approach. Im surprised that Unilever owned Ben and Jerry's is one of them. We have a very successful co-op in my area, that operates in a similar manner. Thanks for posting some good news Mr Hightower, in the midst of the doom and gloom it's a welcome respite.
Thanks for this, Jim. I try to shop with corporate ethics in mind--I haven't bought a Hormel or Smithfield product for years--but it is often difficult to know which ones act responsibly and which do not. I remember very fondly driving Ben Cohen's "Pants on Fire Mobile" around Atlanta when W was running for a second term. It would be wonderful if some enterprising soul with good research and tech skills would start a site that informs of corporate behavior we should reward. Unless I am mistaken, Chobani Yogurt fits into the employee-conscious category as well.
Yes chobani gave stock to all their employees when they went public
We definitely need a site that informs of corporate behavior, so we can make ethical choices.
A friend of mine was working toward investing in stock in Amazon and when she reached the point when she was eligible to buy in they fired her.
We vote with our dollars.Support those corporations which are ethical and moral in their business dealings.
I visited & toured New Belgium Brewery in Fort Collins, CO What a set-up! Employee owned, waste hops going to local farmers for feed, employee time off as necessary, even if no accrued vacation They work as a team-still make a profit (and shared)
Here in Washington State, Bluebird Grains Farm is just the sort of farmer-forward outfit you are talking about. Have them send you their emmer pancake and waffle mix and you can taste what I'm talking about.
I read all the comments and somehow nobody remembered to mention the animals many of these folks exploit by selling their parts for profit in their places of business. These creatures live their abbreviated lives in pain and squalor from start to finish so we Americans can have our 20 minutes of pleasure at the dinner table. Exploitation doesn't apply only to people. Some 10 billion animals who feel pain just like we do are killed every year just in this country, and not too many folks care. Sad.
Not to mention the wild animals that are driven out of their life supporting habitat by hydraulic fracturing and other who suffer from other industrial poisoning
Amen, Linda! You are so right! My comment was the tip of the iceberg regarding animal exploitation on our planet. They suffer so much, and so few care. Thank you for caring.
That's why I am a vegetarian.
Thank you so much, Ann. I have tried to be a vegan for some 35 years, although it is impossible to be a total vegan in America, but I do the best I can. :)
If you look at the Harvard professor's study of wealth distribution, ideal, perceived actual and actual actual for 5,000 Americans, you can see that over 90% of these regular folks have an idea about what wealth distribution should be, about what they think it is and then, what it actually is. All these are quite far apart, but the ideal does make sure everybody gets enough to live decently and the wealthy are to have no more than 10 to 20 times what regular people have.
The problem, as laid out in 1916 by Lois Brandeis, and by Thomas Piketty in Wealth in the 21st Century, is that democracy and great wealth in the hands of a few are totally incompatible and that wealth generates more wealth (and power) than labor does, so the wealthy are always getting further ahead and buying and using the political power that always outdoes the will of the people. The only known cure for this is aggressive progressive taxation, so the wealthy are held to a limit and their extra wealth is taken and distributed to the good of everyone else. Otherwise, people are pushed in the direction of rebellion, as their lack of wealth forces them into hunger, homelessness and misery. The wealthy CEO of one of our least useful, most amoral companies, United Healthcare, which profits by denying needed medical and mental health care to people who need it, was murdered in New York two days ago by a man who left cartridge cases with "denial" etched on them. We don't know, but this sounds like a man who has reason to resent the stealing this company is engaging in. Perhaps his daughter died when needed care was denied coverage. One such woman, wronged like this by the death of her husband, took her lawsuit as far as she could, years ago, and wound up with no legal help at all, with the supreme court making 83% of decisions favor business, not people. Managed care insurance, taking billions in money that should be going to health care, hasn't given a raise to psychologists since 1985, has driven hospitals into bankruptcy, has denied essential care (heart transplants) and spent the money on a sculpture in the headquarters lobby (Linda Peno, 1996). Without strict government limits on wealth, it goes to the stratosphere while robbing everyone else ( 92% of the US population right now.)
Most of our investment portfolio is in women owned and socially responsible companies and ours is outpacing those that don't have this focus. Steady growth with fewer ups and downs.
HEB was our preferred grocer when we lived in Harris County (on the edge of Houston) and we left there in February 2003. So they've been at it for a while.
, How I wish more businesses would realize treating their staff with respect produces better work and good morale all around. The poor Wells Fargo people must have felt awful and depressed cheating people all day. Same for workers whose bosses cut corners and put out shoddy products. Oh, you can rationalize but you still feel rotten at the end of the day.
Thanks. I'm still learning in my old age! I didn't know about King Arthur's efforts, though I have heard of many of the others you mention as being, shall we say, ethical in their business practices.
Is there a list of U.S. BCorporations? Where can I find?
https://www.bcorporation.net/en-us/find-a-b-corp/