Preface | “I read an article on Monday August 19th, 2019 in regards to CEOS of publicly-traded corporations making a sad attempt to alter the “purpose” of a corporation; to switch from the sake of shareholders to public interests.” | DTO™
“Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a life of meaning and dignity. We believe the free-market system is the best means of generating good jobs, a strong and sustainable economy, innovation, a healthy environment and economic opportunity for all.CNBC article on shareholder value no longer the primacy amongst CEOs by Maggie Fitzgerald
Businesses play a vital role in the economy by creating jobs, fostering innovation and providing essential goods and services. Businesses make and sell consumer products; manufacture equipment and vehicles; support the national defense; grow and produce food; provide health care; generate and deliver energy; and offer financial, communications and other services that underpin economic growth.”
Publicly-traded U.S. corporations represent only 3% of all U.S. businesses. The other 97% are comprised of local businesses and a goid majority of those have only a few employees and some don’t any at all.
The function of a publicly-traded corporation is to maximize profit for the shareholders. If you’re under the impression that publicly-traded corporations are obligated with the purpose of employing people (in the U.S.), then you’re sadly mistaken. A publicly-traded corporation has no moral, legal or ethical duty nor obligation to employ people. If a corporation (private or public) could make profits, and not have to worry about employing people and incremental labor costs, then that is something to take under consideration.
“Purpose is not the sole pursuit of profits but the animating force for achieving them. As divisions continue to deepen, companies must demonstrate their commitment to the countries, regions, and communities where they operate, particularly on issues central to the world’s future prosperity.”
© — Laurence D. Fink, CEO of BlackRock
You willing choose to patronize these corporations and now they’re giving you all just enough rope to hang yourselves. What’s more of a shock is the fact that you enjoy doing so.
Why should a publicly-traded corporation employ you and compensate you $15 an hour when they can close up shop and send “your” job overseas to China, India or Africa where a MORE QUALIFIED worker will do it for $1.20 an hour? And yes, that $1.20 [off-shore] is equivalent to what Borg-like locust Americans make here.
“Major employers are investing in their workers and communities because they know it is the only way to be successful over the long term. These modernized principles reflect the business community’s unwavering commitment to continue to push for an economy that serves all Americans.”
© — Jamie Dimon, CEO of JPMorgan Chase
The likes of Jamie Dimon and Mary Barra are playing you for a fool. They’ve seen forecasted budgets and other supporting projections. They want to lower labor costs. The article can give-off the impressions (plural) that they “care”, but it’s a ruse since they see the light at the end of the tunnel over yonder–and by “over yonder“, I mean Sierra Leone where $1.20 an hour is the economic equivalent of an under-qualified American making $15 an hour, or over in Romania where $3.30 an hour allows them to boast about their 94% home ownership. Can an American own their home making $3.30 an hour?
As the heads of publicly-traded corporations, the likes of Mary Barra and Jamie Dimon have layers of U.S.-grade bureaucracy stacked against them. Want to deal with less? Your only option is to go other countries where you deal with one layer of bureaucracy and comply with their environmental laws which, by the way, are the same as in the U.S., only you don’t have to spend $3 million on a compliance section consisting of in-house attorneys, paralegals and legal secretaries.