
We must rethink the purpose of the corporation - paulpauper
https://www.ft.com/content/786144bc-fc93-11e8-ac00-57a2a826423e
======
ethiclub
Without paywall: [https://outline.com/PUAZEj](https://outline.com/PUAZEj)

Much of this can be summarized as "Modern business must acknowledge the nuance
of modern demand."

The traditional phrasing 'maximise profit' is still valid - It's people's
perception of what 'profit' means that needs to change, or even just
perception on how to most effectively gain that profit.

This is a good thing. Consumers are starting to demand that products cater for
all stakeholders - Not just themselves. Externalities are being offset.
Organizations that purely look at the bottom line (tangible $) are missing the
point (and by extension alienating a new and growing type of consumer) - There
are hidden costs & benefits to consider. Saving $1 in costs could cost $2 in
brand perception.

A more discerning worldwide customer base over time (through education,
technology, availability of information) will force capitalism to shift. The
premium tier is already transitioning over to more 'holistic' capitalism,
where companies will identify and address all externalities. The wedge at the
bottom is the issue - The mass produced, 'use once' plastic widgets. Consumers
without $ can't afford to look at higher tiers of Maslow's hierarchy, so
demand is closer to a simple, traditional model (function + price).

This is an inevitable and arguably sensible way to transition to more ethical
capitalism anyway - As Tesla have correctly applied (target premium tier, then
work downwards). Discerning customers are the ones with disposable $ - They
can afford to shoulder some of the offsets, and they can afford to care about
such things and start to demand them.

The question still exists though - Will the 'cheap' end of markets resolve
themselves by adopting proven technology from above? (Once premium tiers have
introduced maturity and economies of scale for ethical operations, then it is
viable for lower quality products). And will all consumers become discerning
and conscious enough about externalities to help swing this shift? The cynical
answer is no, which moves us to the argument that legislative state
intervention is absolutely necessary to prevent future costs* (e.g. mass
migration from climate change).

*Comprehensive costs, not just $ costs - Including negative emotion, lost productivity, general wellbeing of the world populace, reduction of poverty, population health, life expectancy and mobility, and opportunity costs

