Monday, November 05, 2007

Economia by Geoff Davies

Geoff Davies, geophysicist, on reviving the corporate contract:

"Commerce is not possible without an ordered and healthy society. Corporations exist because society created them and allows them to exist. Corporations are intended to facilitate certain kinds of commerce, which are intended to serve the interests of people and society…The social contract between corporations and society needs to be revived and redrawn. Ultimately, society owes corporations nothing, since corporations are creatures of society, created to further the public interest…Wealth is generated by a confluence of knowledge, initiative, effort and money…Yet in our economic system wealth accrues primarily to those who provide money. Those who provide knowledge and effort are regarded as a burden rather than as vital contributors, and paid as little as possible…Thus in our system wealth accrues primarily to owners and senior managers, and the main conduit for their rewards is the corporation (p. 175)."

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