Walmart…

Here’s a fantastic article on Walmart. A balanced discussion of all that is good, bad and ugly about Walmart

Corporations are designed so that they have only one aim in mind – Profits. That is not necessarily a bad thing While that’s good, neither is at an end in itself. Today, there are far too many corporations that are more powerful than they should have been allowed to become. So much so, that for most practical purposes the nation state has been superseded by the organization. And regulations won’t always rein them in,individuals though can and should. Maybe what corporations need are leaders who can think beyond efficiency and profit.

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Posted on November 22, 2003, in Uncategorized. Bookmark the permalink. 2 Comments.

  1. Ever-cheaper prices have consequences. Says Steve Dobbins, president of thread maker Carolina Mills: “We want clean air, clear water, good living conditions, the best health care in the world–yet we aren’t willing to pay for anything manufactured under those restrictions.”

    This is one amazing article da! Very balanced and clearly highlights the issues on hand… Did you read the comments that were posted? This one is especially illuminating.

    THe article goes back to what we’ve been talking about – Profits as an end in itself, and more importantly, the culture of people. As you said in another comment, its more a mindset thing. As long as the end consumer is getting his products cheap, he doesn’t care about where his products come from and how much they’re really costing him. And companies like Wal-Mart will assume the role of spokesman for these consumers and no one can do anything about it, unless they condition themselves.

    We probably shouldn’t be jumping with joy if Wal-Mart decides to source goods from India. We should expect the same story to happen to our producers too. And any day, Wal-Mart can simply shift borders and move to China or Taiwan or whatever. Again, leading to a further unstable economic situation.

    • That comment was quite thought provoking. Oh..I think that it’s good for the indian economy if Walmart sources from here. In many respects, we are pretty far behind anyway and quite likely that the indian economy wastes too much in the form of agency costs, so Walmart sourcing here will do some good. But I guess it’s also about drawing a line somewhere – Someone to play the role of your friend Adam Smith’s invisible hand, so to speak, lest it stay invisible. Corporate governance in the ideal sense is meant to ensure that the invisible hand stays within the company. But I suppose in practice it just ends up being another nice catch phrase consigned to the recycle bin.

      Btw, catch this real nice movie in case you haven’t yet – Sweet November. Saw it yesterday night on HBO. There’s something haunting about Charlize Theron.

      Drat…I was going to say something else….But it’s slipped my mind.

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