US-Money (U.S. regulators must weigh safety versus practicality with money-market funds reforms,The Knowledge Effect)
We all know businesses love money! Every businesses, including those well known international companies try to maximize their profits. So, a business which succeed in maximizing profits is called ‘successful business’?
Photo of textile workers in Turkish ( Turkey's textile industry: Improvement in sight?,DW)
According to the article ‘Turkey’s textile industry: Improvement in sight?’, major textile brands such as Hugo Boss, Nike, Zara manufacture products in Turkey, and which lead Turkey as the one of the largest clothing manufacturer country in the world. (Senada Sokollu, DW, 2014) This seems good to stakeholders such as government and employees because these companies help to improve Turkey’s economy and provide more job opportunities. However, the fact is companies unethically provide low wages and poor conditions to workers in order to make higher profits.
There is no doubt that companies such as Hugo Boss can earn much more profits when it unethically ‘squeeze workers as lemon’ (Senada Sokollu, DW, 2014) by providing wages which is not enough for workers to survive. However, is earning as much money as the company can always good to the company itself?
Article states Nike and Adidas regularly monitor the working conditions due to remarks and criticisms from the society and trade unions. If earning profits is the only interest to companies, then why do not Nike and Adidas just ignore criticisms from different stakeholders such as trade unions and keep maximizing profits by unethical practices?
Businesses loves money. However, businesses are not only responsible for money. They are also responsible to different stakeholders and companies such as Nike and Adidas have realized this. R. Edward Freeman suggests that if a business fail in satisfying different stakeholders’ interest, the business is in declined. (2009, Stakeholder Theory)How do businesses get succeed then? A business which earns profits with considering different stakeholders’ interests, this is called a ‘successful business’!!
Bibliography
- Darden School of Business, Business Roundtable Institute for Corporate Ethics (producers). (2009). Stakeholder Theory by R. Edward Freeman. Retrieved September, 10, 2014, from https://www.youtube.com/embed/bIRUaLcvPe8
- Sokollu, S. (2014, August 26). Turkey’s textile industry: Improvement in sight?. DW. Retrieved September 10, 2014, fromhttp://www.dw.de/turkeys-textile-industry-improvement-in-sight/a-17880532
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US-Money [JPG]. (2013). Retrieved September, 10, 2014, from http://blog.thomsonreuters.com/index.php/u-s-regulators-must-weigh-safety-versus-practicality-with-money-market-funds-reforms/