A breakdown in our values
Bonuses are a symbol of business’s bigger problem – an eroded sense of duty to the wider community
Discussions about corporate bonuses are just a representation of a much greater underlying problem. Klaus Schwab, the founder and the executive chairman of the World Economic Forum, clarifies the transformation in corporate structures.
While creation of goods and services for the common good was important to a company, things have changed last decade. Nowadays, the main purpose of a company is maximising profits and shareholder values. In this context, all parts of a company that do not satisfy expectations can be replaced, which has led to change in individual behaviour. Individualistic profit-seeking now overrules contribution to the common good. The current crisis could bring new hope, it is clear that businesses should deal with their lack of morals.
Therefore, society must become our primary purpose again. Moreover, corporate social responsibility, which is commonly brought up as an important value by companies, needs a ‘stakeholder’ climate.
Tim Van den Berghe
I agree that nowadays businesses only think for themselves. But I think people, and especially businesses, have never been and never will be altruistic. They will only contribute to the common good when in the long term its serves themselves!
BeantwoordenVerwijderenDries Vander Meeren
I agree when you say businesses only contribute to the common good when it turns out good for themselves, but maybe law enforcement should be considerded? This way, society can make companies care about society.
BeantwoordenVerwijderenTim Van den Berghe
Law enforcement could be an option but I think that in the long term it will only cause damage to the economy. Introducing such a law will put off potential new businesses. This way there will be less companies, and less companies mean less prosperity.
BeantwoordenVerwijderenDries Vander Meeren