Boeing has had its share of problems recently. This quote is from The New York Times article published today: Opinion | Boeing’s Problems Started Long Before the Alaska Airlines Mishap - The New York Times (nytimes.com)
"What Boeing has missed, as it tried to dump costs and speed production, was the chance to ensure that safety was a cultural core and a competitive advantage. Corporations can choose to push back against the Wall Street-driven notion that safety equals cost and thus lower profits".
This type of thinking--cutting costs and speeding up production--has invaded every corner of the business world. It's a disease without a cure. Every time I turn around, I read or hear about more budget cuts that result in fewer employees and more work for those employees who remain. When the emphasis is on keeping costs low, something gets compromised, and that is usually quality work and eventually safety. Even employees who want to do their absolute best (and more) will not be able to get it all done in the best possible way. Corners will be cut in the name of saving money and time. After all, time is money. Those employees with good ethics and a conscience know that this type of thinking won't work in the long run, and they leave. Highly-competent employees who don't want to compromise quality and safety leave to take other jobs that won't force them to compromise their ethics. But what happens when the majority of companies behave in this way? What happens when companies that prioritize ethics and quality work become a minority?
As always, Wall Street figures into the picture. What would happen if companies delisted from the stock market and focused on the business they were created to do, rather than on corporate profits and having to satisfy shareholders (investors)? Would they lose all of their investors? I understand that companies need investors who will provide the money needed for the company to grow. And of course investors want their money back via profits. I don't understand enough about how the stock market works to really discuss this in detail. My only question is: when is enough, enough? If and when investors are paid back, do they need more money? The Norwegians have a saying: 'mye vil ha mer'. It means the wealthy will always want more. I guess that's part of the investment deal. As long as companies have to consider their shareholders first, employees and quality work will take second place. Budget cuts, fewer employees hired, outsourcing to cut costs, loss of competent employees and eventually substandard finished products are the result.
Greed will be the death of us.
