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by Nasrudith
2171 days ago
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That assumes an ideal corporation in the physics sense - real world ones have "corruption" in the form of their employees engaging in their own agenda. Take sexual harassment, passing up talent from bigotry, and office politics. They actively harm the profitability and yet they exist at all levels. The incentives are fundamentally what shape the systems including the corporations. Blaming corporations alone is a simplification - the same incentives converge to the same outcomes akin to how power vacuums are filled by warlords. |
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> The incentives are fundamentally what shape the systems including the corporations.
These are key observations, and sadly I suspect there's a Prisoner's Dilemma style thing going on which makes corruption, sexual harassment, bigotry, and office politics somehow "rational" and individually maximising behaviours (for corporations, as well as the individuals they're composed of) whenever any of the competing corporations are known or suspected to be behaving corruptly.
Combined with the combative nature of thinking/reporting about corporate results - where for example FAANG stock price performances are compared to each other, assigning winners and losers, without any relevant incentives or accolades for the entire tech industry having grown the value of the entire sector. A corporation with a 15% YoY increase is deemed a "loser" if some of it's competitors manages 20%.
And we've spent well over half a decade demonising anyone who criticises Capitalism - thus deeply entrenching incentives that are poor for society as a whole, but which have "less poor" outcomes for the corporations prepared to be most ethically barren.