Thursday, February 1, 2018

The unholy matrimony of corporations and feminism

When I was attending the economics class at university, one of the very first lessons that the professor imparted on us was a quite crude-sounding hard cold fact:

"What is the main purpose of a corporation? To make money."

That might sound like extremely simplistic, cold and harsh, but it's true. In general, corporations are created for one purpose, and one purpose only: To make money.

When company owners, and investors, put money on a corporation, they do so expecting as much profit as possible. If you invest a million dollars into a company, you'll be happy if you get $1.5 million per year back. You'll be even happier if you get $2 million back. That's why you are investing in the company in the first place.

Sure, there may be a few people out there who invest in some company because of other more "altruistic" reasons, such as to help people, or for charity, or to make the world a better place in some manner. But by far the vast majority of investors put money on companies in order to get profit from them. As much profit as possible. It would simply be silly to invest money on something that won't profit you.

Corporations, of course, try to maximize their profits in all kinds of ways. Some methods are more legit, others are shadier. In many cases the corporation maximizing its profits actually benefits their customers. After all, becoming the market leader often entails making better products than the competition, and better products benefit the customers.

But then, sometimes, a different human aspect enters the picture to muddy the waters: Politics and ideologies.

In general, it's not beneficial for a corporation to start taking political and ideological stances, especially if they have absolutely nothing to do with the products or businesses that the corporation is producing or offering. Politics and ideologies do not play well into the economics of running a corporation. They are not related to it, they do not help the corporation function more efficiently, nor do they help it maximize profits. Politics and ideologies are just a completely separate side issue that has nothing to do with what the corporation is doing.

On the contrary, a corporation loudly and publicly taking a stance on some political or ideological issue is usually only detrimental to profits: It's only going to drive part of their customers away. Most customers do have related political or ideological opinions, but they know to keep them separate from whatever business they have with the corporation. But now if the corporation starts to shove some particular ideology onto the customers' faces, that's only going to dissuade and anger a good portion of those customers, and drive them away. Especially if the political or ideological opinion has absolutely nothing to do with the products or services that the corporation is offering.

In short, delving into politics is detrimental for the main goal of a corporation, ie. maximizing profits. I doubt investors will be happy if their profits diminish because of something the corporation is doing that's completely irrelevant and unrelated to what the corporation should be doing.

But now enter feminism, and the social justice cult, which is just an amazingly virulent disease of the brain that infects everything, a cancer that metastasizes everything.

Suddenly corporation after corporation feels the irresistible urge to become the champions of society and the defenders of justice, and they start incorporation these completely unrelated ideas to their activities, their products and their customer interactions, often at the detriment of their profits. They start spending money, sometimes copious amounts of it, in order to "better themselves" on this front. Money that's completely away from the investors and generally do not produce any profits. Suddenly these corporations feel the need to become activists, spending investor money on making society "better", even if that expenditure brings no money back to the corporation. Suddenly they start angering a significant portion of their customerbase, driving them away, and reducing their profits, at the expense of the investors. And in most cases none of this has absolutely anything to do with anything that the corporation should be doing, such as manufacturing a certain product, or offering a certain service.

Yet, corporation after corporation keeps getting infected by this.

It actually baffles me why it's happening. One would think that investors would put a stop to it, once their profits start decreasing. But that's the power of the social justice cancer.

No comments:

Post a Comment