That Wikipedia Article is a bit hard to take in. I think cause I'm lacking some core background information. I don't mean to focus on just the criticisms and disadvantages listed in the article but A) I can more easily understand the points being listed and B) judging from what I've seen from how companies like Wal-Mart treat their employees, VW skirt EPA regulations, and Nestle operates in 3rd world countries, many of those criticisms seem very real and very serious. This statement stands out to me . . . If there is a huge interest in short term profits these days and buying and selling company stocks as a way to make quick cash, I don't think many shareholders are too concerned about what happens to a company a year or so down the road as long as they can get their cash and get out before it's too late. Also, this stands out to me too . . . I keep hearing "soft recession" and "quantitive easing" thrown around (I have a pretty good idea of what the first term means and half an idea of what the second term means). Could it be we're in an era kind of like the '70s? Only this time the stagflation is caused by something else, we're at the ropes of trying to control inflation, and now China is the new Japan? If we're still using '80s finance tactics and we're facing all this trouble, whatever new solution we come up with might be more drastic and even more dangerous. I'm gonna read more up on Benefit Corporations cause they sound like a real good idea worth looking into.Most notably, the competitive advantage period takes care of this: if a business sells sub-standard products to reduce cost and make a quick profit, it damages its reputation and therefore destroys competitive advantage in the future. The same holds true for businesses that neglect research or investment in motivated and well-trained employees.
During the 1970s, there was an economic crisis caused by stagflation. The stock market had been flat for nearly 12 years and inflation levels had reached double-digits. Also, the Japanese had recently taken the spot as the dominant force in auto and high technology manufacturing, a title historically held by American companies.