Wednesday, September 2, 2009

Free Enterprise’s Major Fault

The largest businesses of today are showing their most major fault which is that without a real moral core large businesses are more harmful then beneficial to the American people. Today’s business leaders have no concept of ethical behavior when they take large profits even when their companies are in major trouble.

These companies are allowed to fail and still the top management is bailed out with taxpayer's dollars. These same executives are not being held responsible for poor management styles that lead to these failures. In the past these executives were kept safe from personal liability so as to encourage risk taking in order to promote company development now that same system is being used to protect incompetent management practices common to larger companies. The management is given no reason to work for the betterment of companies but instead it encourages them to work for their own personal enrichment which they clearly understand cannot be touched by lawsuits.

At the core of any free enterprise system is that a business leader takes the risk of failure and is therefore entitled to the rewards of success. Company size was held small so as not to endanger the overall economy. In today’s business world companies have been allowed to grow so large that if they fail then it would bring down the national economy. Competition is a key factor in keeping management honest when it comes to business practices but now large companies have not competitors. A system must be established that would punish management for personal profit taking at the cost of their company’s health and well being.