Here is a quick video of Milton Friedman explaining the concept of the invisible hand.
http://www.youtube.com/watch?v=4FHxpoQqPTUh
In class we discussed that although some corporations do not realize it they are helping society and are acting as an "invisible hand". However, some corporations intentionally affect society such as Interface Carpets who along with helping reduce their negative impact on the environment became one of the most successful carpet companies. In seeing the inpact of Interface Carpets, I believe all companies can affect society in a positve way as well as keep their company successful. Purchasers see the company acting socially responsible and want to buy more from that company. So whether intentional or not, companies can impact the society in postive and negative ways. I prefer companies to intentionally act in postive manners instead of just going with the concept of an invisible hand.
Interface is an example of a company that actually increased it's profits by thinking about something other than profits (what their customers really want and what will lead to success long-term (i.e. a world that still exists)). And I love this. I'm hopeful that other companies could start to look at profit as a means to do good rather than an end/good in itelf, like Interface has done. But I wonder if I'm being too idealistic, if this wouldn't work for every company...
ReplyDeleteI believe that companies do influence the world and they need to change their ways to make sure that this world last. If companies that just think about profit and not about what they are doing to the environment then this world will be doomed. We need the environment to survive in this world so corporations need to take responsibility and make sure they do what is right for this world.
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