59.
Profit
The Only Thing That Matters
Acorporation has its own life; it lives for profit, at all costs. It only shares humane concerns for social and environmental issues insofar as it is profitable to do so. Actions deemed to be cooperative with environmental, health, safety or social concerns, are motivated primarily by self interest, the wider interests of society are a distant second. Legally there is nothing wrong with this; it is what a corporation is designed to do, and what it is bound by through its charter. As such we should not expect anything more from these profit making economic entities, and we should certainly not expect them to harbour any significant environmental or social concern.
A profit oriented private enterprise can never look after the citizens’ welfare the way a government can. For example, crop insurance is not an area where any private insurance company would be interested, but the government can go beyond the concern for profitability in the insurance business and subsidise crop insurance in order to stabilise agricultural earnings and make investment in agriculture less risky and more attractive.
Similarly, no private electricity company would be even remotely interested in distributing power to widely diffused rural settlements. This is a task that only a state enterprise would undertake, maybe at a loss initially, and with a generous subsidy; but if it helps the local economy to bloom, maybe in the long run, it will help make profit.
There is also the question of the interests of future generations. A private company motivated only by profit and discounting the present value of future earnings at the current rate of interest, would not see anything beyond 15 years, as the present value of earnings beyond that period would be nearly zero. Only the government can protect the interests of future generations and save the environment from degradation that is not discernible at one point of time but accumulates over decades - for example, the depletion of the ozone shield.
For a corporation, environmental concerns are secondary to securing profit, and environmental catastrophes are common ‘externalities’ of the business economy. At a time when many of our resources are depleting globally- in particular our fossil fuels, and even regionally-such as water supplies, the profit motive does not encourage restraint or conservation. Logically, a profit making company cannot advise its customers to consume less, as this directly undermines business revenues. In the case of fossil fuels, this simple fact has seen the continual increase in oil consumption that is so dangerously poisoning our biosphere. It is unlikely that alternative energy production will prove more profitable in the near future, and thus quite unlikely that alternatives will be vigorously pursued by profit making companies.
In the UK, despite current drought conditions and water usage restrictions imposed upon the general public, Thames Water PLC has declared record pre-tax profits. Meanwhile it has neglected to reduce the 894 million litres a day that is lost through faulty pipes and leakage. A publicly owned and managed water supplier would not be under financial pressure by shareholders and would be able to reinvest profits into infrastructure and conservation.
A profit oriented private enterprise can never look after the citizens’ welfare the way a government can. For example, crop insurance is not an area where any private insurance company would be interested, but the government can go beyond the concern for profitability in the insurance business and subsidise crop insurance in order to stabilise agricultural earnings and make investment in agriculture less risky and more attractive.
Similarly, no private electricity company would be even remotely interested in distributing power to widely diffused rural settlements. This is a task that only a state enterprise would undertake, maybe at a loss initially, and with a generous subsidy; but if it helps the local economy to bloom, maybe in the long run, it will help make profit.
There is also the question of the interests of future generations. A private company motivated only by profit and discounting the present value of future earnings at the current rate of interest, would not see anything beyond 15 years, as the present value of earnings beyond that period would be nearly zero. Only the government can protect the interests of future generations and save the environment from degradation that is not discernible at one point of time but accumulates over decades - for example, the depletion of the ozone shield.
For a corporation, environmental concerns are secondary to securing profit, and environmental catastrophes are common ‘externalities’ of the business economy. At a time when many of our resources are depleting globally- in particular our fossil fuels, and even regionally-such as water supplies, the profit motive does not encourage restraint or conservation. Logically, a profit making company cannot advise its customers to consume less, as this directly undermines business revenues. In the case of fossil fuels, this simple fact has seen the continual increase in oil consumption that is so dangerously poisoning our biosphere. It is unlikely that alternative energy production will prove more profitable in the near future, and thus quite unlikely that alternatives will be vigorously pursued by profit making companies.
In the UK, despite current drought conditions and water usage restrictions imposed upon the general public, Thames Water PLC has declared record pre-tax profits. Meanwhile it has neglected to reduce the 894 million litres a day that is lost through faulty pipes and leakage. A publicly owned and managed water supplier would not be under financial pressure by shareholders and would be able to reinvest profits into infrastructure and conservation.
santustasya nirihasya
svatmaramasya yat sukham
kutas tat kama-lobhena
dhavato 'rthehaya disah
One who is content and satisfied and who links his activities with the Supreme Personality of Godhead residing in everyone's heart enjoys transcendental happiness without endeavoring for his livelihood. Where is such happiness for a materialistic man who is impelled by lust and greed and who therefore wanders in all directions with a desire to accumulate wealth?
sada santusta-manasah
sarvah sivamaya disah
sarkara-kantakadibhyo
yathopanat-padah sivam
For a person who has suitable shoes on his feet, there is no danger even when he walks on pebbles and thorns. For him, everything is auspicious. Similarly, for one who is always self-satisfied there is no distress; indeed, he feels happiness everywhere.
~ Srila Prabhupada (Srimad Bhagavatam 7.15.16-17)
