Healthcare Ethics, Don’t Lower The Standards For Profits

Henry Ford mentions two types of people who are out to destroy business, in his book “Today and Tomorrow.” Professional Financier (Capitalist, in a bad way); one who is out seeking profit and only profit. Professional Reformer (Reform, in a bad way); one who is out to seek higher wages with fewer hours for the labor of the world. In Ford’s mind these two people have directly or indirectly caused a great deal of the business problems our world.

An old time example, is with “The Jungle” by Upton Sinclair. In which Upton writes about a profit driven company willing to sacrifice working conditions and at times human lives to produce meat for profit. Another older example includes the Homestead Strike of 1892, where the Financier demands returns while the Reformer demands wages. Eventual the tension broke and lead to the death of strikers and the Pinkerton Agents hired to protect strike breakers (Scabs). Ford isn’t with out common sense. In fact he has an entire chapter of his book dedicated to the profit and the ethics related. Profit isn’t bad, but it isn’t the only goal of a company.

A company exists to produce goods and services. While it’s being distracted by paying Financiers or caving in to Reformers, the business will loose sight of it’s goals and perhaps dissolve. Here Ford sums up what happens to a company that looses sight.

“Then, the development [of a company] having reached a certain stage, it is capitalized [and goes public]. Men of money see the opportunity to make more money. They set up plants, install machinery, and go to work. But the real product they aim to make is dividends, not commodities. Commodities are thought of only as a means to the dividends. If, in a pinch, anything must suffer, it will be the commodity, not the dividends. Every exertion will be made – wage reductions, quality reduction, quantity reduction, price increases – anything to save dividends.” – Henry Ford
This is an example of where dividends became the goal of the company. If you’ve been paying attention to business trends. You might be familiar with the short-sighted profit driven phenomenon.

Here are some examples:

China’s Baby Formula: the quality of the product was reduced for profit, resulting in many infant deaths.

US companies layoff (wage/time cuts) of 2008-2009; anytime in the US the possibility of layoffs is real, but here we’ve seen a huge turn for layoffs. This is nearly the same problem as a bank rush. Maybe instead of a bank holiday there should be a layoff holiday.

Price increase of energy in Texas with the advent of deregulation. Price doesn’t need to increase if the companies could find a more efficient way to produce energy.

If it looks like a duck walks like a duck and talks like a duck… Do you think theses companies may be suffering from quality issues? Let me say it again, a company exists to produce quality goods and services. We are currently in an ‘economic downturn.’ Now is the best time to separate yourself from the competition by seeking improved goods and services.

By Sean M. Dozier

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Tags: person, ethics, work, money, corporate