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njlauren -> RE: West Fertilizer only had $1 million in insurance. (5/4/2013 6:28:22 PM)
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quote:
ORIGINAL: MrRodgers
As I've repeatedly tried to tell you, the financial world (for profit world) is a separate world. They along with others say like, BP for example, airlines too, constantly get clean away with corporate (business) manslaughter. Death in the name of a profit is a fact of life in the west in general and the US in particular.
Companies that are incorporated private or public have a responsibility as described in what is another Orwellian business term created just for them. The word is fiduciary. That describes a business responsibility for management to manage the business in such a way as to maximize profits without regard for any other responsibility to society such as safety, insurance, taxes and anything else that management may determine as it reflects on profits.
Business's maximizing of profits is in complete disregard for society and thus no matter what all of the banker whores, business whores and political whores tell about their alleged benefits to society...is a complete lie. They have no such responsibility.
In fact because of this fiduciary responsibility, management is charged with the responsibility to fight every regulation, or their enforcement, minimize any contribution to society as it may reflect in a reduction in profits.
Thus almost the entire business world is a complete separate world that seeks to exploit power, govt. and society for its own private profit needs. Got it now ?
I would tend to agree. Once upon a time they used to teach in management school the concept of stakeholder management, where the company had many stakeholders, its employees, the area their facilities were located in, the countries they were in, people who lived where their facilities were and yep, their clients as well, and of course stockholders as well.
This has been replaced by 'shareholder management' where everything is the stock price, and executives, who get so much of their compensation from stock grants, have the incentive to do everything they can to boost that price, no matter how. 12 years ago it was the cooking the books scandals that took down some public accounting firms; in recent years, it has been things like cutting 10,000 jobs in a company that is profitable, or playing around with risky financial investments like CDO's (collaterlized debt obligations) as if it were monopoly money. With the internationalization of business that is all that matters, pumping up the stock price, global companies don't give a crap about anything but that. We are told by the Ayn Rand types that this is efficient business, that this creates wealth the way it should be, but in reality what it often creates is incentive to do things like this, like the financial companies like AIG. In part, it is because they figure de government is going to bail out their asses, they will either limit liability to the company, screwing those suing them, or will end up paying for the costs of cleanup and such.
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