Inclusive corporations are more just to employees than exploitive corporations, and the corporations themselves outperform outside shareholder owned corporations.

The simplest form of implementing equitable principles in a corporation is to simply enact profit-sharing in the corporate papers. Apparently in today’s social mindset it  needs to be explicitly stated that a corporation only exists through the joint efforts of the humans who supply capital and the humans who supply labor, and as such profit would be split between capital and labor. The next simplest route would be to form a co-op.

There are many paths to forming co-ops, often depending on grants or employee contributions to start up the co-op, while ESOPs are primarily used to leverage a loan for the workers to buy-out an existing corporation. Neither of those paths are readily replicable for an average small business start-up, and  most businesses are set-up as exploitive businesses, siphoning all of the profits from the labor of the workforce to the pockets of the owners, rather than enacting profit-sharing. While the nature of that set-up is rarely verbalized, the humans who comprise the labor force are apparently subconsciously aware that they are being exploited and consistently underperform the labor forces in inclusive businesses.

By being exploitive of employees and beholden to external shareholders, corporations choose to be less productive. Many would say it is not a conscious choice, that management and shareholders are just following the standard operating procedures for corporations. But enough studies have been performed, and are widely enough available, that at this point in time it should be admitted that corporations are choosing to be exploitive, rather than being equitable and inclusive, and more productive.

Choosing to remain an exploitive corporation is a different dilemma than starting a small business and choosing from the beginning to exploit employees that will create profits solely for the owner. But birthing evil and perpetuating evil are both evil, one or the other is not less evil.

 

Cross-posted at Equitable Principles