Massive red flag 🚩🚩🚩🚩 when a company claims to be doing good by 100% reinvesting their "profits" into some cause. Clear incentive for management to pay themselves more, or run the company less efficiently.

Makes me think of these quotes by Milton Friedman:

>"Insofar as [a business executive's] actions in accord with his "social responsibility" reduce returns to stockholders, he is spending their money. Insofar as his actions raise the price to customers, he is spending the customers' money. Insofar as his actions lower the wages of some employees, he is spending their money."

>"The stockholders or the customers or the employees could separately spend their own money on the particular action if they wished to do so."

Reply to this note

Please Login to reply.

Discussion

No replies yet.