All business have to care about profit or they won’t be in business for long
Businesses have always cared about profit; just reasonable profit. They would make a product, determine the cost of manufacture, apply a modest profit margin to it (usually about 30%) and factor in things like employee raises and benefits, expanding the business, and building up a financial safety net.
Businesses were run by humans, for humans.
Hedge fund managers and venture capitalists in the 80s changed that. Rather than assigning a fixed profit margin each year to try to maintain, the rule became “how much profit can we squeeze out by sales and (most damning) by systematically dismantling anything that we pay for that benefits our employees”.
This is the end result of having taking human stakeholders out of the business decisions and replacing them with shareholders that are mostly other businesses, hedge funds, and venture capitalists. Profit becomes the ONLY motive, rather than one of many.
Businesses have always cared about profit; just reasonable profit. They would make a product, determine the cost of manufacture, apply a modest profit margin to it (usually about 30%) and factor in things like employee raises and benefits, expanding the business, and building up a financial safety net.
Businesses were run by humans, for humans.
Hedge fund managers and venture capitalists in the 80s changed that. Rather than assigning a fixed profit margin each year to try to maintain, the rule became “how much profit can we squeeze out by sales and (most damning) by systematically dismantling anything that we pay for that benefits our employees”.
This is the end result of having taking human stakeholders out of the business decisions and replacing them with shareholders that are mostly other businesses, hedge funds, and venture capitalists. Profit becomes the ONLY motive, rather than one of many.
Yup. If you are bought by anything with “capital” or “equity” in its name you are fucked.