Are Profits Evil?
My answer is it depends on WHO realized the benefit of said profits!
You are probably thinking…huh?
Let me explain. Generally speaking, profits are considered necessary to incentivize taking risks to deliver goods and services to customers. In other words, no one would be stupid enough to do all the work to deliver goods/services if there was no reward. This is true, no one is that stupid for long if the costs exceed the income!
However, remember I said it depends on WHO realizes the benefit of the profits!
I propose the creation of a surplus while satisfying customer needs and wants is totally appropriate! My position is the exploitation and exclusion of the other stakeholders in the commerce process is what is EVIL!
This is where Cooperatives and Corporations differ!!!
The point of this article is the WHO in the commerce process that realizes the benefit of the profits. For the last 700 years or so it has primarily been corporation shareholders who have taken the risks and the rewards from commerce. For corporations to maximize profits it is simple math, pay the minimum possible for labor, IP, social capital, and charge the maximum possible to customers! Leaving the producers and the purchasers out of realizing any benefit of the business surplus created.
Cooperatives are a far superior business model! Cooperatives exist to serve their members first and foremost. I’m not going to go into the details of patronage and other mechanics of how cooperatives work in this article, but just understand cooperatives exist to serve the membership, the surplus created is a by-product of delivering value to the members.
I hate the concept of employee! It is a pet peeve of mine. I think the entire employee classification should be outlawed! No one should EVER be an “employee” and W-2’s should be illegal! If we terminated the employee classification then what? Simple, every enterprise would be comprised of partners sharing in the risks and rewards! It is the only equitable solution since all stakeholders are contributing to the business results.
This is what the cooperative business model delivers. All stakeholders realize the benefits of the surplus created!
In conclusion, C3 Alliance is building the world’s 1st Web 3.0 Cooperative. Our mission is to end global poverty and human exploitation! We use a multi-stakeholder not-for-profit cooperative legal entity status to achieve this mission. If you would like to learn more, please read a few of our other resources.
How Cooperatives are Going to Save the Future
Cooperatives vs Corporations
Employee is just another name for slave…