A publicly traded corporation can still be innovative. I think the key is really the personality driving the corporation. The shareholders may have a great amount of influence and exert a lot of pressure for the company to make profits, but it is really down to the people running the company as to whether the profit margin becomes the sole focus. Elon Musk is a prime example of someone who tries to keep innovating and I really respect the things he’s trying to accomplish.
Unfortunately, you’re right, a lot of companies do succumb to the cycle of providing ROI. The top level puts pressure on the lower levels to find ways to increase their profits. Like a king in his castle, they command and expect it to be accomplished. They don’t always provide direction on how to do it. Anyone who fails can just be replaced, and if the bottom levels end up doing something less than respectable, they can claim ignorance…something they can’t do if they themselves provide innovative and meaningful direction from the top. They have a scapegoat that they can promptly fire to show the shareholders that they’re doing their job.
Providing innovative direction to a company ends up being a personal risk. If it fails, your reputation is sunk. Not many CEO’s or even upper level management of any sizable company are willing to take that risk with their careers. It ends up falling to small and/or startup companies to take on innovation. If they fail, they have less to lose and therefore less risk. Many of the larger companies now just scout out these innovative groups and buy them out for their IP if they look promising.
When the upper management puts this buffer between themselves and the riskier side of management, they effectively alienate themselves from their customers. As long as they company remains profitable and keeps their share-holders happy, they have no reason to listen to their customers because their money obviously speaks louder than their words. When it does finally start to affect their bottom line, then you get to see the public relations campaign swing into motion. Without some level of personal risk by the upper management though, it’s really just a hollow gesture aimed at soothing the masses and stabilizing their profits. Once that happens, they’ll stop talking about listening to their customers and start expecting management to find way to increase their profit margin again.
Our lawmakers are usually elected on the premise that they will do things to make their voters lives better in some way. One of those ways tends to be bringing in jobs so that they can have well paid, working citizens, who along with the corporations, pay their taxes. Corporations will, in turn, try and convince these lawmakers to create laws beneficial to their business.
Now, aside from the obvious unethical parts that show up when, say, a lawmaker is taking kickbacks, there are the cumulative unethical effects. A lawmaker could truly mean well, and believe that some of these laws are helping their citizens. but if they end up stifling competition and favor certain businesses over others, they’ll end up destroying the economy as a whole. Many lawmakers don’t always take into account the economy as a whole when they make these decisions. They’re influenced by lobbyists who make compelling (and often short-sighted) arguments as to their benefits. If they don’t receive or research the other side of the story, then they won’t understand the consequences.
Corporations are capable of making the world a better place if they put their efforts towards such things. We just have too many examples of them not trying to believe in such altruism.
I sure hope not, Elon-i-wan Musk-obi is quite possibly my only hope 