Putting Profit in its Place

Jane Burston: Putting Profit in its Place

Wed, 13 Nov 13 http://www.bbc.co.uk/podcasts/series/fourthought

 

Jane Burston argues that by placing too much emphasis on profit, companies behave in an unethical way, and it is time for social purpose to take centre stage. Listen to the extract up to minute 6:16 and try to answer the following questions.

     1. Some of the language Ms. Burston uses has been extracted in the following lines. Since some of it refers to banking scandals and circumventing labour regulations, you may need to check some of the meaning through the links provided:

My hopes had been pinned on a lecture called Business and social purpose

Zero-hours contracts

Sub-prime mortgage crises

Libor rate rigging

Large scale oil spillages

A stationery company that had developed a terrible reputation for running the small companies in its sector aground

Reality bites

Cut corners and cut costs

2. According to the speaker in what ways do Friedman and Smith believe capitalism to benefit society?
 

     3. In Ms. Burston’s experience at Harvard, what was the solution put forward to make up for and dispel the company’s reputation?

      4. How does the speaker justify and exemplify the following statement: ‘So long as businesses have profit as the end goal, they will inevitably be unethical’?

     5. What threefold solution does Ms. Burston suggest in order for this business model to be changed?