Business Unethical
With the state of the economy these days it amazes me that some businesses still preserve their bloated leadership salaries and bonuses while cutting staff, services, and customer relations. I know that I am in no way an expert in business, but why does a CEO need a multi-million dollar salary? And then still gets to keep the thing when he runs the company into the ground by trying to maintain profit margins in a rocky economy by cutting jobs, product quality and good customer relations. Why not instead cut your salaries and bonuses first and keep people in there jobs so that you can keep them secure in there jobs and maybe you will see an increase in moral and job satisfaction. Two things that help your business by helping quality of product and relationships with the customers.
I think one thing that is missing is the fact that there is no company loyalty in with executives these days. You don’t see CEOs in these multibillion dollar industries care enough about the business to really fix the problems that they face. Instead you get these execs that just pass the buck. They get hired on to fix a company and they gut it, slash production, staff and trim where ever they like to improve short term profit margins. And what they are really doing in creating a big headed entity with skinny legs that will eventually crumble under the weight. A successful company would be structured like a pyramid, with a large strong base to support the company.
Of course the above is only part of the problems facing the economy these days. Banks are another cause. Now I am not sure as to why they have shut down all there cash flow, but that is an issue. If businesses can’t get credit or loans then we are never going to see the end of this recession. Then of course there is the stock market. The stock market has been very fickle lately. Dropping and gaining two, three hundred points from day to day. A possible cause is the introduction of e-trading and day traders that are only interested in short-term gain. With the markets flooded with these people it is no wonder that we see the market swings that we have been. I had been thinking for months that the market was a bit bloated with the DJI reaching over 12K. I was sure a recalibration was coming but with all the day traders in the mix the market crash because they were the majority of the money in the market and don’t want to stick out the change.
Of course the main cause can be laid at the feet of the new American mentality of instant gratification. CEOs wanting big bucks for short term fixes so that they can retire early or move on to the next big score. Big banks with there millions of dollars in investment capital going to waste because they have cut their cash flow while small banks take the risks with less and most of the time loss because they can’t make the long term commitment that a big bank can and won’t. Then the day traders that flood the market in the morning at low market prices and pull out all the money in the afternoon as the price peaks, making the market plunge at close. I will leave you to draw your own conclusions as to the fixes, because I have none. I find that talking with people whom are already in that mentality can’t see rational thought because what they do is rational in their eyes already.