How much is enough?

In a recent blog on Tosoh Talk, the editor, talking about profits of multinational energy and pharma companies, raises the question of "How Much Is Enough?". The talk is about profits and whether there is any limitation to how much money a company can make, possibly balanced by a measure of societal 'good'. Here is my take.

Associated with some companies making incredible profits are the people that work for these companies benefiting in the wealth that has been created. It has been argued, demonstrated I would say, that income inequalities in the US have increased over the last 40 years. Instead of only focusing on profits we should also consider the value that is created. Personally I give more leeway to companies such as Apple, Microsoft, Google, Facebook, and pharma companies reaping in billions of dollars in profit versus, say, ExxonMobil, Shell, BP (among others) doing the same or better.

While it is clear that ExxonMobil serves a larger good, reaping the rewards from a glut in global supply or market insecurities does not rank high on my scale of 'best American companies'. But ExxonMobil does not seem to care much about being a role model of corporate citizenship, as they did not take an active role in developing alternative energy sources until it was clear to a 6th grader that such an effort would benefit its bottom line, its competitiveness as well as our nation's well being. Recent TV ads touting its role as a leader in alternative energy development will hopefully only help to solidify ExxonMobil as a 'we-will-do-evil-when it-pays' type of company. Successful, but lazy, not to say sleazy. Probably on par with Wall Street companies that seem to strive to make money, not by offering better services, but by creating 'instruments' to better fool their customers.

When it comes to healthcare (and the companies that develop the band aids and cures) the defining question will be whether healthcare should be a right for all or a privilege for those who can afford it. While the Supreme Court no doubt will next year debate this question, let's keep in mind that a good number of the most successful pharmaceutical companies have a European origin. Apparently, having a headquarter in a country where medicine is considered a societal good does not hamper a company from making substantial profits. Of course, the people at the top these companies have been shamed into accepting only a fraction of the salaries that their US peers are taking home. Do these United States really want to go there?