Tuesday, April 18, 2017

Is profit a form of social debt?


All business relations are based on the assumption of an existence of profit.


But what is profit?

Simply put it is the difference between the cost to make a product and the amount of your money the company wants to keep for itself... for "future developments", bonuses and the CEO's and owners / stockholders new car and other things he/she may like to have.

On one side profit seems like a one sided act by the company selling a product or a service but...

the other side of profit is the acceptance of that price by the customer.

It is almost as if every purchase is a contract between the seller and the buyer in which trust and faith is exchanged.

The seller and the product are found trustworthy to purchase at the price offered and the customer gives his/her money in faith that the product will perform as advertised and satisfy the need for which it was purchased.

Seen from this viewpoint the money that make the company's profit represents the faith of the customer in the quality of the product and the reliability of the brand.

We could simplify the definition by saying that the company and its product were given a vote of trust.

This vote of trust is a moral decision where among many products, a particular one was trusted...

It is interesting to observe what happens to our vote of trust once it has been given.

Is it being used morally - to really develop a better product and thus reinvest value in society?

If the main purpose of the profit generated was for the company management to indulge in wasteful partying and celebrating their greatness as well as purchasing luxury items the contract of trust is broken.

As a result we see our modern situation where 1/3 of the global funds are stuck in offshore bank accounts and not circulating in the economy.

There is analogous phenomena in the human body. When a cell, be it even a brain cell, decides to change the natural flow and act contrary to the purpose of the organism. When it decides to accumulate excessive energy for its own self and shares its corrupt existence as an example to surrounding cells it becomes a cancer cell. If the example is followed by surrounding cells a tumor is formed.

How do we know that this is what is happening to our global society?

If there are extreme rich and extreme poor people we can easily conclude that there is some form of disturbance.

Management functions are important but no organism can exist without all organs and cells working for a common purpose - to maintain life.

It seems we are facing a moral choice:

Acknowledge that we are an interdependent society made of people with various valuable talents and unique value

or

Keep creating a world where the social debt accumulated by the clever ruins the world for all /including themselves/.


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