| > Why does H-E-B do so many nice things for the state? But: Why aren’t more companies like H-E-B? Regardless any sort of legal principle, the fact is capitalism rewards exploitation. The more a company exploits, the more profit it can bring in. Whether that be worker or customer. While it's not stated that way in business management courses, that's exactly how it's taught in a round about way. The entire business class is chasing after efficiency, how to do more with less. And their idols are the likes of Walmart who will shut down a store if anyone says "union" and who aggressively negotiates for tax breaks in every location where their stores go up. But further, venture capitalists have learned that one of the most effective ways to extract capital is to purchase well respected brands and destroy their quality while sucking off every last bit of value before customers wise up to the impending death of a beloved brand (see Sears, KMart, and basically all of fast food at this point. Also, be prepared to see this in your vet, dentist, and retirement homes). People make millions doing these awful things which is why they keep happening. It's simply a lot harder and less profitable to make a "good" company which makes good products and respects their customers. And if H-E-B ever sells to a 3rd party, exactly the same thing will happen to them in a heartbeat. |
In the short run, that doesn't seem worth arguing with.
It isn't clear whether or not it is really true in the long run. If shareholders (and courts) demanded the long view, it's equally unclear if the exploitation approach could really have taken hold.