There’s nothing inherent to running a business that implies cannibalizing one’s own brand reputation for short term profits. That sort of behaviour reeks of an inexperienced and perverse management culture. You can find countless examples of businesses where the brand’s reputation for quality, reliability, and safety are considered sacred and any employee who publicly damages that reputation is ostracized. Japanese companies pretty commonly have these cultures, for example.
Generally a business runs for profit. They teach people in business school to maximize profits. So there kind of is something inherent to running a business that implies cannibalizing one’s own brand reputation for short term profits. There is always that incentive to give the least amount for as much as you can take.
Japanese have immortalized a concept called “Black Company” and “Death March” where they push their employees into so much overtime that they literally die or risk losing their livelihood. Which is probably not great for long term or their reputation.
That’s true that shareholders and stock evaluation are main drivers for this phenomenon, but Private Companies aren’t necessarily more saintly than companies with Public Offerings.
There’s nothing inherent to running a business that implies cannibalizing one’s own brand reputation for short term profits. That sort of behaviour reeks of an inexperienced and perverse management culture. You can find countless examples of businesses where the brand’s reputation for quality, reliability, and safety are considered sacred and any employee who publicly damages that reputation is ostracized. Japanese companies pretty commonly have these cultures, for example.
Generally a business runs for profit. They teach people in business school to maximize profits. So there kind of is something inherent to running a business that implies cannibalizing one’s own brand reputation for short term profits. There is always that incentive to give the least amount for as much as you can take.
Japanese have immortalized a concept called “Black Company” and “Death March” where they push their employees into so much overtime that they literally die or risk losing their livelihood. Which is probably not great for long term or their reputation.
It’s called “Wall Street”.
That’s true that shareholders and stock evaluation are main drivers for this phenomenon, but Private Companies aren’t necessarily more saintly than companies with Public Offerings.