2015年4月23日木曜日

Benefit for what? 4/22

We learned many things from the film of The Corporation and our teacher's lecture.
I didn't know the difference between a company and a corporation.
A company is a small organization to do what the leader want to do with their co-workers.
A corporation is a "big" organization to do what the authority want to do.
"Big" means that a corporation has many stockholders who can express their opinion and change corporation strategy.
When a boss of one company tries to do something he wants, he can do that because his company is his own belongings.
However, if he change his company into a "corporation", he can't decide what his corporation do, because corporation needs to meet stockholder's expectation.
Usually, stockholder's expectation is profit, means money.

In class, our teacher showed us a good example.
A president of his company wants to introduce eco-friendly paper for every single paper in his company.
This eco-friendly paper will take more cost, but he want to take care of environment.
Some will say it is very good idea for environment and his company's reputation, and others may say it is bad strategy because there is no advantage for profit.
If it is his "company", he can do that even it will high cost and low profit.
(Financial network)
http://www.iqsintl.com/index.php/about-us/the-company/

However, if it is a "corporation" which has many stockholders to get capital, it will trigger some discussions. 
In 21st century, many people can agree with the eco-friendly strategy, because now people is aware of environmental issue around the world.
But, some people want to focus on getting more profit.
I can understand there are some people who don't pay attention for other than profit.

The problem is that only few people disagree with that plan, but they will win in the court.
By law, a corporation need to seek to get more money, so even if a CEO want to take a eco-friendly strategy which will good for environment and lose a little bit benefit, a corporation can not do that.

When there are 100 stockholders, and 99 of them agree with eco-friendly plan.
Only one disagree with that plan because of finance.
Then, that corporation can not take that plan because of law.
http://eigo-tatsujin.net/phrase/5031/

Why there is still such a old-fashion and stupid low?
In 21st century, there should be some corporations which focus on environment or people's happiness, rather than profit.
I can understand there was a law which say corporation should focus on making profit, but now, why no country changes that law?
Many people are thinking that thing, but maybe someone doesn't want to do that.

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