The desire of corporations to maximize profits creates conflict with the general welfare of the nation at large.
The desire of corporations to maximize profits creates conflict with the general welfare of the nation at large. The statement is appealing at first glance but as we analyze the details,the facts disagree with the conclusion.
The general welfare of the nation at large is effected by the corporations, as the strategies designed to maximize profits may not directly benefit the nation. Lets take the most discussed and conflicting example of the scenario. These days we get to hear about the US and other european companies outsourcing their back end operations to the asian countries. The reason being that with the advancement of technology, wireless,internet etc.. the non client facing back end operations can be taken care from anywhere in the world. If the same job is done within country it may cost 10times more as compared to if it is outsourced to any asian country where labor is cheap. Consequently the companies saves huge amount of money and makes skyrocketing profits. This leads to reduction of job openings and creates umeployment, as the jobs are moved out of the country. As stated in the statement above corporations tend to conflict with the general welfare.
But eventually when corporations make profits, the economy of the country as a whole increases. If corporations make profit, they tend to invest the money in varous other feilds and industries, which in return creates more high paying jobs. Outsourcing could only reduce the low paid jobs but instead brings in more white collar jobs.
Also with corporations becoming global giants, employees are not restricted to work in one particular city or country. With the experince they get from the organization, one can move to any part of the world chasing better opportunites as an individual.
The corporations are the back bone of countries economy and plays major role in the welfare of the people. If they progress, country also progresses and vice versa.