Monday, February 26, 2007

A More Powerful Path

Interesting article worth reading in Fast Company (if you don't subscribe to this magazine you should be).

It talks about should companies have a responsibility to the wider community rather than just delivering to shareholders.

The example provided is around the Wild Oats grocery chain purchasing their coffee under Fair Trade conditions (eg higher price, better conditions for workers, environmental considerations etc).

It's something I support in that without a community you cant have a business in the first place, or look at it another way, if you under pay your farmers, they'll crash and burn and end up growing something else which is an inefficient market economy due to loss of knowledge and inefficient capital.

NOTE: This is very different to CEO's of companies giving cash donations to their favourite charities, this I STRONGLY oppose, send the money back to your shareholders and let them allocate their capital if they want to. It's not your money to donate, but thats a post for another time.


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