What's to blame for corporate fraud: greed or leftist agendas that lead to weakened corporations?

Question

Columnist Andrew Potter argues that the source of corporate scandals is greedy managers who ignoring their fiduciary duty to shareholders while some groups point the finger at leftist activist agendas that pressure shareholders to their causes, preventing them from fulfilling their roles of keeping managers accountable and generating profits.
http://ca.news.yahoo.com/s/09012007/21/andrew-potter-corporation-isn-t-psycho-s-wuss.html

Answer 1

I agree with the first response: Leftist activist agendas? That's not even coming from left field (if you'll pardon the pun), that's coming from somewhere in the strip mall parking lot across the road. Only someone with ideological blinders on would blame "the left" for the decisions made by white collar criminals themselves. Not only is it greed, but we might also want to place blame on the justice system that lets a lot of these guys get off with a slap on the wrist, paying back some of the money stolen, and a few months in a minimum security prison. This is much more typical than the harsh sentence given to Ken Lay. I mean, where's the threat of getting caught for these guys?

Answer 2

Neither. The idea that leftists can dominate the corporate agende could only promoted by someone who has not worked in a corporation. Managers, CEOs, and all others involved are taught only to take action if the action will result in them being promoted or if they get bigger bonuses. Bonuses are seldom tied to advancing some obscure social agenda, and are more likely to be tied to earning profits.

Promoting this idea of the "invincible left" is something that has gone on since the labour groups got vocal. It is completely absurd the idea that the top 20% (who have vast majority of wealth in their hands) would actually care about some powerless protestors that have zero influence on the economy. If Nike "cares" about the left, it is only because it will earn more profits. Think about it. Does Nike really want its buyers feeling like they are oppressors by buying their sneakers? Of course not. So they will work to alleviate such a perception amongst its buyers. A great example of a company that could care less about the mythical left is Walmart. When ever there is a rumour of a union, they simply shut the store down. And guess where they buy all there stuff? China (an undemocratic, but yet capitalist country); not exactly the most humane working conditions in the world.

The real problem is the secular-Capitalist mindset; which is the paradigm that the democratic societies are essentially built on. An action is deemed worthy if the material benefits exceeds the material costs. What are the key measures that cause a sense of movement in society? GDP, the stock market, and commodity prices. Poverty, disease, homeless, and misery are not even monitored, and therefore cannot be a concern.

Collect all the messages from the media, school, and work, and we would conclude that the only thing that matters is our own selves (I.e. individualism) and having fun. Since the view is totally locked into this idea, all the focus is on is trying living it up, and therefore actions are undertaken to maximize our personal gain - irrespective of laws, morality, and the like. The only reason that the law is adhered to, is because people feel that they consequences of getting caught outweigh the benefit of breaking it. As was pointed on in the movie the Corporation, corporation break the law if they can simply pay a fine - as a cost of doing business.

Nothing will change unless the underlying paradigm changes. A broader view that puts something other than materialism as the essential value and satisfies the rational mind is the only thing that can change the way that business is done.

Answer 3

Greedy managers? These people negotiate their terms of employment and corporations accept them. Thus, when people like Nardelli, formerly of Home Depot, walk away with $200 million golden parachutes, who's to blame? Didn't Nardelli do what is expected in a capitalist system, i.e., get the best deal he could for his services? They didn't have to hire him. But clearly the terms on which senior managers and execs are hired have changed. If senior execs in the 1970's were "only" getting between 40 and 50 times more than the people on the shopfloor and the execs were "worth it", what's changed that they're "worth" so much more today?

To suggest that the "left" has been able to influence corporate direction - at least recently - is laughable. Corporations engage the left in propaganda wars, but the left is not sitting at the Board table. Unions, NGOs, activists, etc., don't have the wealth or influence the corporate sector does in determining corporate or political agendas.

Answer 4

It is the capitalist society that has founded the corportations. Now with de-regulated governments more than ever, they are rampantly sinking their teeth in every possible source of making profits. Profit is the leading cause of the corporate crime - their moto is usually "increase profits and reduce costs" and the only way you can do it is to exploit cheap labour, pollute the environment, and kill of the competition with are small privately owned businesses. Profit and greed for more money are reasons for corporate crime and also a reason for their pervasive expansion around the globe. Monsanto, Nike, McDonalds, and so many others are guilty of corporate crime. So, there is no right answer to the question - the corporate agenda and greed for profits are the two biggest factors that started the corporations and that will contribute to the future of the corporate collaplse and a global economic collapse. Cheers

Answer 5

There is a point to having a balance of opinions in reporting - but this is ludicrous. It is laughable to even suggest that "leftist activist agendas" are an explanation for corporate scandals. That's just throwing dust in the air - in a lame attempt to distract us from the obvious. The answer to the question of -who- not what is blame is plainly the individual managers and executives themselves, who are breaking the law and when they see there is no consequences to committing the crime are encouraged to further criminal practices. Perhaps a certain amount of blame should be accepted by the pathetic attempts of the justice system to punish the crimes as well. The only solution is to increase the number of police agencies who investigate such crimes and to increase the taxation of big business to pay for it - good citizens have to pay to keep the crime down - good corporations cannot abdicate their responsibility either.

Answer 6

The corporate world is so harsh that people think they have to cheat to get ahead. Systems are NOT rigourous enough to catch cheaters in the early years. By the time the person has worked their way up, they start to get a false sense of entitlement. As the person works their way up in the organization other people shower special perks on the rising star. By the time the person nears the top, they have lost touch with their true worth (they think they are worth more) and have lost sight of the line between right and wrong. The sad thing is the senior person who is robbing the company is convinced they are doing nothing wrong.

Answer 7

Greed is a good motivator for fraud in the corporate world, but along with greed must be simplicity and poor control of finances. Some smart guy, or guy who thinks he is smart finds a hole or a procedure that is not backed up or checked and takes advantage of it until such time as some smarter guy gets jealous and rats him out or wants in on the action.

Answer 8

that could rely upon what context "company greed" is used. If a company dumps poisonous waste on your ingesting water because it truly is more low-priced then disposing it real, is it no longer straightforward to blame company greed if someone will grow to be ill? If companies pay the smallest volume of taxes they have ever paid alongside with billionaires and millionaires even as some thing of human beings pay more effective in words of income factor and the companies and prosperous are those paying the most in political promoting and political campaigns in an attempt to insure their taxes stay low and to be sure that doesn't change, will we no longer then blame them for his or her greed?

Answer 9

if you look carefully, our debt ridden big businesses [not the guy who stuffed a couple of mil in his pocket] are by and large 'running scared'.
growth used to be slow. no more. fast, rapid takeovers, buyouts, etc. taking chances where they never would in other times. this is the driving force, keep the stock money coming in and growing. the sad thing is it is a finite situation. the more they get, the more chances they take, more money, higher stocks, also higher stakes.
in a sentence, big business is running scared because it is broke, in debt to their eyeballs, and in desperate need to keep the stocks flowing and growing, knowing if it fails, they fall. there is no solid footing for any of them.
if you look to some and wonder why, if their business failed, do they look so flush. simple, they set their business so they are not directly responsible for failure although they are willing as all get out, to take the accolades when things are going good. by setting business up that way, even the small gouger is able to save his/her own fortune when a business dies suddenly. they only have limited responsibility. the only losers are you and I, the little stockholder looking for a nestegg, who get flat. the dealer says 'you're out, you're broke. [then the bank wants their piece of it all]
The legal borders have become very foggy nowadays because of it all, therefore it now takes lawyers months or more to free their clients from responsibility.
kind of like a hollywood marriage that goes bad. the star forks out half his estate to an ex, even though his life was hell, and she is now set to climb the social ladder and find a new 'husband' or take her chances in 'making it' on her own. she drinks/or he, parties, makes every effort to find her 'fortune'. but then, like when business stops growing, she gets old. end of story

Answer 10

LOL - What a S - T - R - E - T - C - H....
Example: this statement defies logic: "The left-wing case against the corporation is well known, due in no small amount to the fantastic success of the 2003 film (and book) The Corporation." ~~~ HAAAA-haaaa-haaa - you mean to tell me the (so-called) left-wing "case" against corps stems from a movie !?! HAAA_haaaa-haaa!!! I love it!!!

How about joining the debate with something approaching intelligence... your embarassing your kin-folk!!

You gotta love Americans - HAAAA-haaa--haaaa!!!!