5 Comments

Thought about it some more and maybe I do agree with my boy Milton after all.

Problem is short termism vs long view.

Yes, company should make a profit first and foremost. But long-term profit is predicted upon social/political/economical/cultural environment. And there is no profit in certain kinds of environments - at all.

So a company should try to shape it in order to preserve/raise future profits.

Expand full comment

Now we're getting deep into short-termism vs long-termism and finite vs infinite games 🙂

Expand full comment

Exactly! Most people don't even know the game they play. Not a good starting point for any strategy.

Expand full comment

Love Milton as a speaker, but don't agree with: The Social Responsibility of Business Is to Increase Its Profits. If I as an investor value DEI - as reflected by my allocations - it's good business to saturate my need. And yes - it's political - cos what isn't?

Expand full comment

I agree! Businesses should make their political stances clear, and investors might as well consider them. This is a bit problematic for large institutional investors in charge of pension funds, but, as you said, what isn't?

My beef is more with flip-flopping arguments that degrade logic… I'm fine with open political positions or tools that work regardless of political side. But when they get confused, even well-intended businesses start creating what Chris Argyris calls defensive routines and self-sealing behaviors. And let me tell you, it’s really bad working for an organization when such behaviors spread—it reminds me of the Severed TV series.

Expand full comment