corporations purpose is to make a profit, noy to save their hometown?

Question

In the movie Roger and Me, Michael Moore confronts lobbyist Tom Kay about whether General Motors should be held accountable for the demise of Flint, MI, which was where General Motors started. Tom Kay responds by saying that "corporations purpose is to make a profit, not to save their hometown."

Do you agree or disagree with Tom Kay and why?

The reason they shut down the General Motors plant in Flint was because they were sending it to like India or somewhere where they could get cheaper labor

Answer 1

Corporations only want to make a profit, where I live they're destroying the environment just to make a profit, and they have also stated that when they're thru with the resourses they'll simply flee somewhere else.

Answer 2

I grew up in a small town near Indianapolis Indiana where GM and its affiliates had about 18 automotive plants making all sorts of parts for cars. That was in the 1960's. There was no Japanese cars at that time to deal with. There was Unions, but things were going well. The town was full of blue-collar workers. Now that is all gone. GM has moved out and closed down the plants. Both foreign cars and Unions are to blame. Corporates will come and go. It is the Town's responsibility to develop a balance in terms of businesses. Having one large business run everything is risky. Like putting all you money into one account. A good corporation will try and promote well-being into the community. But if it is unprofitable, then like a cancer, it will become weak and die. That is Capitalism, not Socialism. We are based on a Capitalistic society that flourishes because we consume.

Answer 3

The reason they were shutting down the Flint plant is that it was no longer profitable. My question is, what do you tell ALL the other GM employees that you're putting at risk in order to save that one plant? What happens the next time a plant becomes unprofitable? Do you keep that one running too? Pretty soon the entire company is out of business and EVERYONE is out of a job. But you know, Michael Moore isn't the biggest thinker in the world. He's a movie maker.

Answer 4

Corporations are just like people... only they are of a much larger scale.. People don't go about giving everything they have to others, without keeping anything for themselves.. Most don't even want to compromise their luxuries for the benefit of others.. What they have way in excess, they may think about giving others..

There are always exceptions though.. there are people out there who don't care whether or not they have something for their meal, but will go ahead and help someone else..

Companies mostly are of the first kind.. Their first priority is to make profit. And after making profit, they may consider charity. But there are also some organizations which are established for the betterment of society..

Answer 5

Corporations are designed to make porifts for their owners, the shareholders. that's what they're designed to do. By doing that, they make the economy more efficient and get people more jobs. If they helped every hometown, there would be less money for more efficient jobs, more efficient work, and a better economy. By being about profit, corporations build better technologies and do things for cheaper, making life better for the public.

Answer 6

By definition he is correct. Investors are risking thier capital to make money. If they don't they suffer a loss. As pensions/401ks/IRAs invest in corporations regular people lose too if they fail. People find it easy to cheap shot corporations but if they can cheat on their taxes or spouses or anything else that is just fine with them. Double standard city.

Answer 7

A corporation's ONLY purpose is to make money for it's shareholders. When you grow up, you'll understand.