Lawrence E. Mitchell
- Published in print:
- 2001
- Published Online:
- October 2013
- ISBN:
- 9780300090239
- eISBN:
- 9780300137767
- Item type:
- chapter
- Publisher:
- Yale University Press
- DOI:
- 10.12987/yale/9780300090239.003.0010
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter argues that the mandate of stockholder profit maximization encourages managers to treat workers poorly, both to the disadvantage of the workers and the corporation as a whole. It looks ...
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This chapter argues that the mandate of stockholder profit maximization encourages managers to treat workers poorly, both to the disadvantage of the workers and the corporation as a whole. It looks at two essential components of the problem: worker treatment and its effect not only on the individual worker but on social and political structures as well; and the possibilities of worker ownership as a solution. The chapter reveals that worker treatment and its consequent social ills can be significantly ameliorated, even within the current system of investor capitalism. It discusses how workers who are made to feel responsible and accountable, who identify with the goals of their employer, and who are made to feel like important contributors with independent ideas are far more likely to care about the corporation than workers who are treated as nothing more than living machines designed for the production of profit.Less
This chapter argues that the mandate of stockholder profit maximization encourages managers to treat workers poorly, both to the disadvantage of the workers and the corporation as a whole. It looks at two essential components of the problem: worker treatment and its effect not only on the individual worker but on social and political structures as well; and the possibilities of worker ownership as a solution. The chapter reveals that worker treatment and its consequent social ills can be significantly ameliorated, even within the current system of investor capitalism. It discusses how workers who are made to feel responsible and accountable, who identify with the goals of their employer, and who are made to feel like important contributors with independent ideas are far more likely to care about the corporation than workers who are treated as nothing more than living machines designed for the production of profit.
Lawrence E. Mitchell
- Published in print:
- 2001
- Published Online:
- October 2013
- ISBN:
- 9780300090239
- eISBN:
- 9780300137767
- Item type:
- book
- Publisher:
- Yale University Press
- DOI:
- 10.12987/yale/9780300090239.001.0001
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This book explores the philosophical and social environment in which the modern American corporation is grounded, and explains why, from a cultural perspective, the people should not expect the ...
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This book explores the philosophical and social environment in which the modern American corporation is grounded, and explains why, from a cultural perspective, the people should not expect the corporations to behave responsibly and accountably. The American corporation is a subject of wonder for the fabulous wealth that this protected capital has produced, freeing so many people to pursue other dreams and lead lives of greater meaning than merely making a living. It is a wonder, because, in these ways, modern American business corporations have created material well-being that allows so many people to live the eighteenth-century liberal ideal on which America was founded, an ideal of individual freedom, autonomy, and choice. However, the American corporation is also a subject of horror for the way its limited liability permits it to dump the costs of production onto those who are powerless to affect its conduct. The book examines the legal structure of the corporation in finer detail, demonstrating how each aspect of that structure contributes to some problems identified and suggesting ways in which an environment might be created in which managers, stockholders, and workers can use the best aspects of the structure to more likely assure responsible, long-term management. It also presents a brief examination of the nature of capitalism and its various forms.Less
This book explores the philosophical and social environment in which the modern American corporation is grounded, and explains why, from a cultural perspective, the people should not expect the corporations to behave responsibly and accountably. The American corporation is a subject of wonder for the fabulous wealth that this protected capital has produced, freeing so many people to pursue other dreams and lead lives of greater meaning than merely making a living. It is a wonder, because, in these ways, modern American business corporations have created material well-being that allows so many people to live the eighteenth-century liberal ideal on which America was founded, an ideal of individual freedom, autonomy, and choice. However, the American corporation is also a subject of horror for the way its limited liability permits it to dump the costs of production onto those who are powerless to affect its conduct. The book examines the legal structure of the corporation in finer detail, demonstrating how each aspect of that structure contributes to some problems identified and suggesting ways in which an environment might be created in which managers, stockholders, and workers can use the best aspects of the structure to more likely assure responsible, long-term management. It also presents a brief examination of the nature of capitalism and its various forms.
Charles K. Wilber
- Published in print:
- 2017
- Published Online:
- November 2017
- ISBN:
- 9780190670054
- eISBN:
- 9780190681999
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780190670054.003.0006
- Subject:
- Religion, Religious Studies, Theology
Economic analysis can be useful to Catholic social thought in its concern for the common good, or the rough economic equivalent, human flourishing. First, treating the standard economic concept of ...
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Economic analysis can be useful to Catholic social thought in its concern for the common good, or the rough economic equivalent, human flourishing. First, treating the standard economic concept of externalities as ubiquitous can result in policies that promote human flourishing. Second, much scholarly work in economics recognizes that under conditions of interdependence and imperfect information, rational self-interest frequently will lead to socially irrational results unless that self-interest is somehow constrained. Two specific changes can better promote the common good: investing in the prospective role of worker-shared ownership and replacing gross domestic product with an accounting system that more accurately measures the well-being of society. These reflections lead to an answer to the question, What is the common good?Less
Economic analysis can be useful to Catholic social thought in its concern for the common good, or the rough economic equivalent, human flourishing. First, treating the standard economic concept of externalities as ubiquitous can result in policies that promote human flourishing. Second, much scholarly work in economics recognizes that under conditions of interdependence and imperfect information, rational self-interest frequently will lead to socially irrational results unless that self-interest is somehow constrained. Two specific changes can better promote the common good: investing in the prospective role of worker-shared ownership and replacing gross domestic product with an accounting system that more accurately measures the well-being of society. These reflections lead to an answer to the question, What is the common good?
