Thursday, October 18, 2007

why more?

When a nation’s standard of living is measured by GDP divided by population, and companies are driven to maximize shareholder’s profits, we seem to be caught in an endless upward spiral.

We invent new illnesses so we will buy more medicine.
We manufacture new processed foods so we can buy more groceries.
We create trends so we can buy more clothing.

It’s sometimes acknowledged in the nonprofit sector that growth isn’t always a good thing. Sometimes, it’s perfectly okay for a nonprofit to stay the size it is, and just continue serving the people it has served in the past.

Why can’t we acknowledge this in the corporate sector as well?

Joel Salatin, of Polyface Farms, heavily featured in Michael Pollan’s book The Omnivore’s Dilemma, acknowledges that his environmentally regenerative agriculture is not reproducible at a large scale. Though he encourages others to engage in similar agricultural practices in their local areas, Salatin himself doesn’t want to expand and sell more.

Why can’t companies take a more holistic view at their operations? Call it social responsibility or what you want. A company’s worth is not solely in the profit it confers to its elusive shareholders, but in the value it can provide to its customers and its employees. The narrow-minded focus on profits has become incredibly destructive--from the promotion of drugs that pharmaceuticals knew could kill people, to cost-cutting measures that have kept employees at poverty level.

Can a company not rest at peace in operating year to year selling good quality products, and providing well for its employees? Why does there exist this constant need to grow the business every quarter?*

Why do we need more? Why do we demand more?
When does it stop?

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