Self Regulation and Chicken!


Can't claim credit for this cooking, my friend...
Can’t claim credit for this cooking, my friend Paul was responsible. (Photo credit: Wikipedia)

 

Self Regulation and Chicken!

 

Here Milton Friedman explains that business will self regulate without government regulation.

 

How do you feel about that? Ever had food poisoning? Fun?

 

I don’t get the impression that businesses aren’t willing to lose a few customers (and I mean permanent losses) if it means more profits.

 

Maybe I’m cynical or maybe I just read the news?

 

Or how about this?

 

How many people have to be killed or injured by supposedly self regulating businesses before you realize that Milton Friedman was a much better television celebrity than an economist?

 

James Pilant

 

Is our chicken safe to eat? | Business Watch | McClatchy DC

 

http://www.mcclatchydc.com/2013/10/17/205695/us-urged-to-do-more-to-protect.html

 

After 317 people in 20 states got sick from eating contaminated chicken, consumer groups today urged the U.S. Department of Agriculture to do a better job of inspecting poultry.

 

via Is our chicken safe to eat? | Business Watch | McClatchy DC.

 

From around the web.

 

From the web site, Eslkevin’s Blog.

 

http://eslkevin.wordpress.com/2013/10/09/government-washes-its-hands-of-meat-and-poultry-safety-inspections/

 

In 1998, USDA rolled out its pilot HACCP system. The acronym stood

 

for “Hazard Analysis and Critical Control Points” but federal meat

 

inspectors, industry watchers and food advocates quickly dubbed it “Have

 

a Cup of Coffee and Pray” because it transferred oversight from the

 

government to the plant, in shocking, industry-friendly de-regulation.

 

HACCP was supposed to replace meat inspectors’ old-fashioned “poke and

 

sniff” method of visually examining carcasses by instituting advanced

 

microbiology techniques. But it is also an “honors system” in which

 

federal inspectors simply ratify that companies arefollowing their own

 

self-created system. As in “Trust us.”

 

Last week,   a coalition of food and worker safety advocates and

 

allies gathered outside the White House to protest USDA’s imminent plan

 

to implement HACCP system-wide now that it has been used at pilot

 

locations. “Instead of trained USDA inspectors, companies will police

 

themselves,” says the site of the group that organized the protest, sumofus.org.

 

“Plants will be allowed to speed up production dramatically. Chickens

 

will spend more time soaking in contaminants (including pus and feces!),

 

and poultry plants are compensating by washing them in with chlorine.”

 

Make as Much Money as Possible–Typical Business Rule?


029-1Do businesses have ethical obligations beyond what the law and shareholders require? | The CQ Researcher Blog

“In a free-enterprise, private-property system,” Friedman wrote, “a corporate executive is an employee of the owners of a business. He has direct responsibility to his employers. That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of society, both those embodied in law and those embodied in ethical custom.”
In this view, going beyond those basic requirements — for instance, as Friedman wrote, spending more to reduce pollution than “the amount that is in the best interests of the corporation or that is required by law” — amounts to improperly spending money that belongs to the shareholders.
The U.S. concept of free-market capitalism is not, of course, universally accepted. Karl Marx, the intellectual father of communism, saw profit as the result of capitalist exploitation of workers. Socialist and communist systems assert that some or all of business profits rightfully belong to society.
But among those who embrace capitalism, many say ethical obligations go well beyond simply making a profit.
A survey of business executives from around the world by consulting firm McKinsey & Co. found that only a minority wholeheartedly embraced Friedman’s view. Sixteen percent of respondents agreed that business should “focus solely on providing the highest possible returns to investors while obeying all laws and regulations.” But 84 percent said the role of large corporations should be to “generate high returns to investors but balance [that] with contributions to the broader public good.” [Footnote 14]

Do businesses have ethical obligations beyond what the law and shareholders require? | The CQ Researcher Blog

Does business believe in the absolute pursuit of profit to the exclusion of all other goals? A study by McKinsey and Co. indicates otherwise. This is an unexpected result based on my perceptions but, of course, I live in the Southern United States where free market worship is one very short step below the more traditional forms of worship.

I hope the study is correct. We need business leaders willing to be valuable members of our communities. Without their participation, the ties that bind us together as a people, a civilization, weaken.

James Pilant

From around the web.

From the web site, Business Talk.

http://businessadministrationblog.wordpress.com/2012/01/29/goal-of-the-firm-maximize-profit-maximize-shareholder-wealth-stakeholder-wealth/

Wealth maximization is long term process. It refers the value of the company generally expressed in the value of the stock.

Value maximization says that managers should make all decisions so as to increase the total long run market value of the firm. Total value is the sum of the value of all financial claims on the firm- including equity, debt, preferred stock and warrants.

Here, the executives undertake investing in new projects, maximizing profits from existing products and services, controlling cost, and adding value to the company through process, which reflects in the price of the stock, but always in the increase in Net Asset Value and Equity Per Share.

The wealth of corporate owners is measured by the share price of the stock, which in turn is based on the timing of returns (cash flows), their magnitude and their risk. Maximizing share price will maximize owner wealth.

Cash flow and risk are the key decision variables in maximizing owner wealth.

When investors look at a company they not only look at dollar profit but also profit margins, return on capital, and other indicators of efficiency. Profit maximization does not achieve the objectives of the firm’s owners; therefore wealth maximization is better option than profit maximization.

Enhanced by Zemanta

An Examination of the Political and Economic Crisis in Ireland


I very much enjoyed this documentary. I find it insightful. A citizen of Ireland who worked as a foreign correspondent returns home and looks at his country with some perspective.

It’s easy to see the very similar problems in both the United States and Ireland. In both cases, the government baled out the banks without asking any serious questions nor taking into account the actual value of the bank loans. In both cases, a real estate bubble that was clearly propelled by speculation was considered to be a safe and continuing source of prosperity for the country. And in both cases, the taxpayers wound up footing the bill, while unemployment doubled and services were reduced.

In other words, the well connected walked away and discussed with great seriousness their loss of reputation and minor financial irritations, while the great majority of the nation’s citizen’s suffered for their crimes.

James Pilant

Ireland The Rise and Fall of the Economy, Real Estate, Development – YouTube

 

Enhanced by Zemanta

Today’s Gag (via Doodlemeister’s Weblog)


I like the cartoon. jp

Today's Gag Jim is on vacation. This is a reprint of one of his "greatest hits." A new cartoon will post next Monday. To purchase reprint and/or other rights for this cartoon, buy a framed print, or have it reproduced on T-shirts, mugs, aprons, etc., visit the CartoonStock.com website by clicking the sidebar link. Copyright © 2011 Jim Sizemore. … Read More

via Doodlemeister's Weblog

Central, Hong Kong Pretty Girls – courtesy of HK newspaper Apple B.B. Daily (a lesson about freedom of press) (via Kempton – ideas Revolutionary)


Is it ethical to take pictures of pretty women (or anyone) without their permission to put in a newspaper?

I don’t think so but this is Hong Kong. What are the rules there? Read the attached article and enjoy.

James Pilant

Central, Hong Kong Pretty Girls - courtesy of HK newspaper Apple B.B. Daily (a lesson about freedom of press) *** Hong Kong Pretty Girls *** I am a keen observer of pretty girls in HK and around the world. Unfortunately today, against my better judgement, I will argue the Hong Kong newspaper Apple B.B. Daily should voluntarily stop taking photos of some of these pretty girls (中環我至靚) in Central, Hong Kong. Yes, some of these photos taking and publishing has to be stopped!  Especially many of the photos that I love the most. Isn’t this paradoxical? Lets lo … Read More

via Kempton – ideas Revolutionary

The Beginning of The End of Rupert Murdoch? – Rebekah Brooks resigns over phone-hacking scandal (via Kempton – ideas Revolutionary)


When I first saw this, all I saw was the first part of the headline, and I thought, “No, he can’t be stopped.” But then I caught the part where Rebekah Brooks resigns and thought, “Maybe he is mortal after all. ”

James Pilant

The Beginning of The End of Rupert Murdoch? - Rebekah Brooks resigns over phone-hacking scandal Given the business smart of Rupert Murdoch and the firepower one can buy from hiring Edelman, the largest global PR firm, it may still be too early to say this is the "Beginning of The End of" of Murdoch. But at least it is easier to say this may be the beginning of the end of Rebekah Brooks. Guardian, "Rebekah Brooks resigns over phone-hacking scandal – News International chief stops short of full apology, saying she no longer wants to be 'focal … Read More

via Kempton – ideas Revolutionary

Your Rune For June 23 is Laguz/Flow (via Witches of the Craft’s Blog)


I have a rune?

James Pialnt

Your Rune For June 23 is Laguz/Flow Laguz/Flow You wish for unity and fusion, consolation and satisfaction of all your emotional needs. This is a time of cleansing and reorientation, a time of contacting your intuitive wisdom, where you find all the answers. Immerse yourself in that inner knowledge, for you will find there, whatever it is you need. … Read More

via Witches of the Craft's Blog

Greenpeace Hangs a Banner on Mattel HQ


Greenpeace in its effort to bring attention to Mattel’s use of rogue paper companies in Sumatra hangs a banner on one of their buildings (they also bring in a barbie look alike). The paper company in Sumatra destroys tiger habitat and is big into deforestation.

Let’s join Greenpeace’s effort to discourage Mattel from using this brand of paper. You don’t have to agree with all of Greenpeace’s philosophy. This is a good fight.

James Pilant

Barbie Gets Dumped for Being an Environmental Wrecker (via Brisbane Times)


Barbie gets dumped as part of a new campaign by Greenpeace targeting the toy industry for its connections to deforestation in Indonesia.

SHE is more likely to be cruising yards in a pink convertible, plucking an item from her glamorous wardrobe or generally enjoying the lifestyle afforded an international fashion icon.

Up until now Barbie has yet to be seen with a chainsaw, hacking her way through pristine rainforests.

But a Greenpeace campaign is seeking to do exactly that as part of a global campaign to highlight the destruction of rainforests for pulp paper used in the toy’s cardboard packaging.

Read more: http://www.brisbanetimes.com.au/environment/conservation/barbie-gets-dumped-for-being-an-environmental-wrecker-20110607-1fr4i.html#ixzz1OjZj85Wx

This is just too much fun but the comedy doesn’t end here. Here is Mattel’s response –

A letter from Mattel’s director of corporate responsibility Kathleen Shaver, which Greenpeace showed to the smh.com.au, said it was “advancing its sustainability strategy” by printing its catalogues on paper with a minimum of 10 per cent of recyclable materials and that its annual report and office paper was printed on paper certified by the Forest Stewardship Council.

Mattel has faield to return emails from Farifax but a spokeswoman for APP said met all the legal requirements for logging in Indonesia and called upon Greenpeace to make public its analysis.

“Greenpeace may think citing popular children’s toys is a cute way to get attention for its extreme position. However, we believe it’s irresponsible to play on the emotions of children and their parents to rehash old, discredited allegations in order to attack the industry of a developing nation,” she said.

Wow, looks like Greenpeace hit a nerve. Apparently all that PR training can’t conceal a little arrogance about the “industry of a developing nation.”

James Pilant

Ken Dumps Barbie (via The Chatterjis Blog)


This is delicious. This campaign is clever and fun. It shows how corporate PR and the billions spent on advertising and brand recognition can be turned against the company.

As time goes by, this kind of clever anti-marketing is going to become a necessity as corporate power in the government increases. More and more it will be necessary to turn the company’s power against it. It’s very much like judo.

James Pilant

Ken Dumps Barbie The “Ken dumps Barbie” campaign launched by Greenpeace to protect the natural habitat of the Sumatran tigers, orang-utans and elephants was being promoted globally this week. The campaign is to stop Mattel from using Indonesia’s most notorious rainforest destroyer Asia Pulp and Paper (APP) for their packaging.       There is strong global pressure from corporate business and trade organisations for APP to change its method and practice of clearin … Read More

via The Chatterjis Blog