Business Ethics In The Tractor Industry

[WM75Guy]

That’s not true. In fact it’s patently false. It’s something that is often said by people who have only the most rudimentary understanding of free market systems.

When I got my Bachelors in Business Management one of the first principles we were taught is that companies exist to maximize shareholder wealth, which I have found to be true. For most companies it is the stock holders. Determining who the shareholders are is not always straight forward, especially for not-for-profit companies. That often is the people that operate the not-for-profit. Check out the IRS Form 990 for those companies and see how the top 40 people are compensated. And yes, I have more than a rudimentary understanding of free market systems.

 

[Bill Guenthner]

When I got my Bachelors in Business Management one of the first principles we were taught is that companies exist to maximize shareholder wealth, which I have found to be true. For most companies it is the stock holders. Determining who the shareholders are is not always straight forward, especially for not-for-profit companies. That often is the people that operate the not-for-profit. Check out the IRS Form 990 for those companies and see how the top 40 people are compensated. And yes, I have more than a rudimentary understanding of free market systems.

You were taught wrong then. My company exists to serve our customers, our community and our employees and improve people's lives. Making a profit allows us to continue to exist and to continue to serve our purpose. No one worth knowing starts a business unless they are passionate about what they do, whether that's a doctor or a hay farmer and no company that isn't passionate about serving their customers and employees succeeds in the long run.

US corporations specifically are legal entities created by the state to provide protections to business ventures for the very explicit purpose of promoting the common good. The state has no interest in "maximizing shareholder wealth"

 

[Cahaba Valley Farm]

Do consumers go to a mega tractor dealership and ask the sales man...let me see all your tractors from your most ethical tractor company?

Maybe they should

 

[Cahaba Valley Farm]

Wonder if that pertains to the 'right to repair' lawsuits Deere is embroiled in presently?

You're not supposed to mention that

 

[JethroB]

Here’s a question once asked of an investment class while in college:

Should a shareholder owned company contribute to charities? Or should profits, dividends, etc. flow down to the shareholders and let them make the decisions on any charitable gifts?

 

[3Ts]

There's one more option, that is to get all the employees (or shareholders) to donate funds for a cause into an account the company set up and then the company says that they (the company) donated all the money.

 

[Texbest]

As a lifelong tractor salesman it's my responsibility to make sure you know how to properly and safely utilize what you have bought. Keeping you happy and talking is in my best interest as my living is never made off a sale but off a customer who returns and refers his friends and family.

 

[Number15]

Lot's of broad brushes being applied in this thread.
I will say that the company I am part owner of is designed to
make money of course
provide excellent income to our employees (1 year we gave bonuses that equaled yearly salary, it was a good year )
serve our customers
be the best we can be and admit when we are not, we will sometimes recommend our competitors
be ethical (we lose some business because of this)

 

[mikester]

The future of driving is here?

The Era of ‘the Car You Own Forever’ Is Coming to an End

It won’t make sense to form a bond with a car that’s not really yours and runs on software someone else controls.

www.thedrive.com

 

[BleedingOrange]

Hey number15, can you give some examples of losing business by being ethical ?