In response to Bruce Byfield’s article on how We shouldn’t feel bad when businesses have no morals. I feel compelled to point out the flaw in his logic and hopefully add some sense to why moral outrage is the correct response to unscrupulous behaviour by companies.
It’s not a surprise when companies are inconsiderate/naughty/evil, but that doesn’t make what they do any less wrong and it doesn’t make a negative reaction any less justified. The most important thing to remember as a consumer is that your aversion to certain behaviours of others directly affects your willingness to engage in business with someone. To put it another way: What we think about a business being bad, effects their profit. Just ask BP or Toyota.
The purpose of a corporation is to fulfil all of it’s responsibilities. It’s responsibilities to it’s capital investors is to maximise the return on their capital investment through profits, but it’s responsibility to their employees is to pay them the contracted amount. Two conflicting responsibilities… and yet somehow companies manage to balance them.
To list just a few possibly conflicting responsibilities that all companies have: Shareholders to extract profits, employees to pay, business to continue, customers to serve, environment to maintain, suppliers to pay and even maintain, society to improve and government to appease. Here’s Bruce Schwartz doing a much better talk on why scruples are a good idea.
When a company hurts the FOSS ecosystem (in this case Novel), it’s neglecting it’s responsibility to maintain it’s suppliers, it’s hurting it’s relationship and ability to serve it’s customers and it’s endangering the continuation of it’s business. We don’t even need to bring in it’s possible legal responsibility to know that what Novel did was damaging and wrong. Yes I used the word ‘wrong’, because sometimes there is a right way and there is a wrong way to “maximise profits”.
Having a social responsibility shouldn’t be impossible for companies and we shouldn’t put up with companies that have the audacity to claim it isn’t their responsibility. Too often they hide behind “My responsibility is to the share holders” which is about as nonsensical as looking after sun, but not the earth.
If your business has short sighted, profit motivated share holders, my advice is to get rid of them as soon as possible. As a business owner you don’t have to take up extra responsibilities of having investors…. No wonder Canonical and Facebook don’t want to float on the stock market, I know I wouldn’t want to have share holders in the current ethical climate.