| Profit maximization is the overarching objective. Customer dissatisfaction, complaints, fines etc is only a problem if it starts eroding profits. Businesses have developed countless mechanisms to be able to survive client backlash. Oligopolies and cartels is a major trick. Competition highlights poor performers. Not good for business. Uninformed customers is another biggie. Hence, fight consumer protection mechanisms, limit disclosure etc. Finally, regulatory capture, eg fixing the rules of the game so that legally there is no recourse. So, yeah, in some ideal world in which economists win Nobel prizes arguing the optimality of the corporate structure you'd be right. We dont live in that ideal world. That sad thing is that, obviously, profit maximizing private enterprize, just like the public sector itself, are indispensable organizational units. Until we learn to tame them we will be paying the price. |