Our first step forth making America a better place is facing our issues with corporate profits. Corporate profits as defined by Wikipedia states, “an economic indicator that calculates net income using several different measures.” Increasing profits means either increased corporate spending, growth in retained earnings or increased dividend payments to shareholders. All are good signs to an investor. But an issue that is commonly passed over when talking about corporate profits is ethical profits. A company’s ultimate goal is to increase profits. While many companies grow profits ethically, others maximize profits unethically via slashing employee expenses, marketing, or impacting the environment negatively. Unethical business practices can lead to smeared public relations and a loss of trust and respect on the part of the consumer. Large businesses contribute more to unethical profits compared to smaller businesses, but that is if smaller businesses are invested in. Smaller businesses thrive from investments outside of just us the consumers.
We will begin to encourage larger businesses to invest into the smaller ones to help them prosper.
If smaller businesses begin to prosper they will be encourages to grow and open into larger businesses or encourage other entrepreneurs to invest in smaller businesses. Small businesses have a higher failure rate, we need individuals who aren’t afraid to fail and invest in these businesses, entrepreneurs.
Ethical is defined as “relating to moral principles or the branch of knowledge dealing with these.” Profits are defined as “a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.” When combined these words are an extremely important factor to corporate profits, ethical profits. While many companies grow profits ethically, others maximize profits unethically via slashing employee expenses, marketing or impacting the environment negatively.
- Slashing Employee Expense
One of the fastest ways to maximize profit and reduce costs is to slash employee expenses. In many industries, payroll makes up a large percentage of overall costs for a company. Slashing employee expenses and removing benefits is an ethical issue that can cause poor morale in the workplace. It is unethical in many people’s eyes to cut employee pay and benefits in an attempt to pad the profit numbers, but many companies opt for such a strategy because it is quick and effective.
Prosperità Umana Solution: In order to avoid slashing employee expenses Prosperità Umana will provide benefits to all employed individuals at the lowest cost; however businesses may provide more advanced benefits if they wish. This will exempt individuals from losing all possible benefits by giving them baseline benefits for free. It will also provide a minimum wage of $9.00 an hour. Businesses can increase this pay if they wish, but cannot legally pay an employee anything less than.
Marketing has a strong relationship with a company’s profits. A solid marketing strategy can grow a brand, attract consumers and ultimately build profits. However, in attempt to maximize profits, companies often straddle the line of what’s ethically right and wrong when it comes to marketing.
Prosperità Umana Solution:. In order to avoid such marketing strategies Prosperità Umana includes these bans but are not limited to any sexual ads in an attempt to attract people to a product or service, targeting individuals in advertisements and or using violence as a means to draw attention to a product or service. All public marketing must be approved by representatives of the Prosperità Umana; if the businesses marketing strategies violate these restrictions they may be asked to close down.
- Environmental Impact
The production of most items has some type of environmental impact. Companies that want to grow profits may use unethical environmental practices by increasing pollution, contaminating water supplies and destroying forests. It’s often less costly to negatively impact the environment than it is to positively impact it. These companies often have to adhere to certain environmental laws in the United States and other developed countries, but the laws often just prevent excessive environmental damage, not mild or moderate damage.
Prosperità Umana Solution: To protect the environment from the use of unethical environmental practices, Prosperità Umana has protective and proactive environmental measures. If notified of any unethical environmental practices by businesses, the business may be asked to use alternatives to protect the environment, or depending on severity, may be shut down.
Smaller businesses thrive from investments outside of just us the consumers. Prosperità Umana will begin to encourage larger businesses to invest into the smaller businesses to help them prosper. Smaller businesses are far better at determining the current demand for products and due to size, and adjust their products frequently. However, small businesses lack large consumerism and do not have the skills necessary to upscale. Smaller businesses have a higher failure rate due to this. With the possible investor, a larger business, this ofter drives small business owners to pursue their business. Larger businesses should invest in smaller businesses because it would improve both their success rates and bring two distinct and equal integral skills forth. Smaller businesses excel at produces at demand, and larger businesses obtain consumerism. Also with the investment of a smaller business under the larger businesses belt, they are continuing to increase in size. This creates more advantages in procurement, distribution, manufacturing, and marketing.
Prosperità Umana will provide a fair legal system to ensure small business owners they have support. We will streamline business registration to make it easier for these businesses to open and open at a faster rate. Prosperità Umana encourages diverse funding which will come from the larger businesses to ensure the smaller ones. And Prosperità Umana will simplify tax laws to simply the procedures it takes to start a small business.
The individuals that are relied on to start these small businesses are known as entrepreneurs. An entrepreneur is a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so. Entrepreneurs are an asset to every economy; they create wealth, jobs, and prosperity. Without these risk taking individuals small businesses would never exist. Small businesses have the highest failure rate due to low consumerism, but with the implement of larger businesses investing they can prosper. Entrepreneurs can also negotiate with other business owners to help their business grow or they can trade products. Through the efficiency of entrepreneurs, Prosperità Umana strongly supports them. Entrepreneurs also add to national income, they produce new products or technologies that enable new markets to be developed and new wealth to be created.
Prosperità Umana will help to support entrepreneurship by having business-friendly laws to respect contracts, enforce market-corrective laws to avoid false advertising, product safety, and bank disclosures, protect individual property, and avoid corruption.