Corporations and Psychopathology
The maximization of profits, the improvement of production efficiency, and the growth of shareholder wealth are the core objectives that drive every business. Every corporation has a clear corporate strategy whose implementation propels it towards the achievement of the set organizational goals. Even when corporate social responsibility is critical, most companies prioritize their interests over everything. Most engage in activities that increase their profit efficiency without a consideration of their impact on the society. As such, most American corporations are psychopathological and exploitive with little regard for social responsibility (Zhu & Chen, 2015). Most large corporations are accused of polluting the environment, exploiting employees, using child labour in other countries, evading taxation, and engaging in unethical and unfair business practices against the consumer and, which affect the environment and the society negatively (Hill, 2014). For instance, Wal-Mart Stores, Inc., Pfizer Inc., Apple Inc., have in the past been accused of evading taxes, significant pollution of air and water, and using child labour in production respectively (Jennings, 2014).
According to Flaschel and Luchtenberg (2014), the exploitive and psychopathological tendencies of most corporations are caused by unregulated capitalism and corporate greed. As the corporations focus on improving their market share and maintaining market dominance, unethical capitalistic practices play a significant role. Most companies are willing to implement any strategy that guarantees reduced production costs, improves market dominance, and increases profitability. Following this, acts such as the exploitation of employees by cutting labour pay, wages, and benefits, using child and slave labour, and evasion of taxes are rampant (Hill, 2014). Additionally, many corporations explore and use natural resources irresponsibly while releasing pollutants without consideration of their social responsibility (Flaschel & Luchtenberg, 2014). However, the enforcement of existing laws and the creation and implementation of policies that force corporations to prioritize social responsibility will alleviate the tendencies. For example, the addressing corporate greed and establishing and implementing principles that govern environmental-social-governance, and monitoring and evaluating corporations through bodies such as the UN Global Compact will improve corporate social responsibility practices and alleviate psychopathological and exploitive tendencies (Hill, 2014).
Flaschel, P., & Luchtenberg, S. (2014). Roads to social capitalism : theory, evidence, and policy. Cheltenham, UK: Edward Elgar.
Hill, M. (2014). Taming the corporate beast . Dollars & Sense (313), 13-19.
Jennings, M. (2014). Business ethics: case studies and selected readings (8th Edition ed.). Stamford: Cengage Learning.
Zhu, D., & Chen, G. (2015). CEO narcissism and the impact of prior board experience on corporate strategy. Administrative Science Quarterly 60 (1), 31-65.