1) In my mind,this video best represents the main concept that we analyze in the fundamentals of business course. It shows that BP case has caused long-term damages to many stakeholders involved in the firm( especially the environment). That derives from what Margaret Blair defines ''the shareholder view that possess the world today'' in which shareholder in order to save 1 million dollars per day they cut off safety corners but that lead them to sacrifice 100 billion dollars. So,what is important to underline is that the profit maximization of the firms in a short-term might cause several damages not only to the firm involved but to many others elements link to that. In addition, the profit maximization in short-term is not always bad but it depends on what kind of firm we are talking about ,i.e the BP , that should think about which type of consequences could have with bad management .
2) As far as i'm concerned, i think that Margaret Blair is against the ''shareholder view'' that is why she is against the logic of profit maximization in a short-term.As she explains, the problem today is that many organization born with this idea on achieving money in one-two months or even tomorrow but this leads to huge losses even for the shareholders themselves.
1.The BP oil spill disaster apparently caused huge damage both environmentally and economically. I think this case we can refer to shareholder theory,because of the interest to maximize the profit, without considering interests of different categories of stakeholders and also external environment. So they took the risk in order to save a million dollars per day, but failed by losing 100 billion for the caused damage. 2. I think she is not against of the profit, she just wants to point out that the business entities should take every detail into consideration, take care of the customers and employees, not make poor decisions in order to have the long term effect, which will benefit both the shareholders and other groups of stakeholders.
1. In my opinion this video gives us the idea of what can happen to a business if it just takes care of the interests of the shareholders. It explains really well the logic which is beyond big corporations: they just want to maximize their profit in a short term. And if this means to reduce "useless" costs ( like the BP with the safety plan in case of an oil spill) it doesn't care.
2. I totally agree with Margaret Blair's thought. She definitely isn't against the logic of profit, she truly believes that the world's economy cannot be based on the social model. In her opinion business entities should operate respecting the law and with a long term prospective. A business should not take care just of the shareholders but even of all the possible stakeholders.
1. After watching the video about B.P case, I can say that the B.P company was trying to save money by cutting safety corners without taking into consideration that a disaster like this might happen one day. B.P was trying to maximize their profit for the short term by putting in risk the shareholders, the employees and the environment, things that don't serve the main need and want of an organization (satisfy human need). in order to trying to save money (1 million $ for a day) they lost 100 billion $ in shareholders wealth. 2. I think that Margret Blair is not against the logic of profit, but she's against maximizing profits in any term (long or short) in any price. what she's trying to present is the fact that you don't need to put in risk the shareholders wealth, the employees and the environment in order to maximize your profits. in another words, there is not a shortcut to maximize profits. like she says in the beginning: "business is about improving our lives". if an organization can't improve our lives, what is his existence for?
BP is the classical example of a company where profit means everything and sustainability nothing. If you cut safety cost you are going to regret for sure, maybe not in a month or in a year but eventually (see VW case) it happens. Surly for some quarters you are going to earn more than your competitors but you are actually decreasing the value of the company in the long-term. Beside the environmental issue (most important) there is also the issue of the employees who’s safety is in danger. They are not going to work happily not only in the Gulf but also in all the other stations of the world creating future losses for the company. From the video I cannot say if Margaret Blair is against the logic of profit but I can say that Lynn Stout is against the maximization of the profit in the short-term. As she said in the beginning of the video she loves free market and recognizes the role of it so we cannot define her neither a socialist or anti-capitalism, she only wants a capitalism who looks over the next balance statement.
1.The BP case is the perfectly demonstration of what happens when a business thinks only to maximize his profit in a short-term,taking care of shareholders' interests and not to all stakeholders,without a morality. Satisfying human needs,creating sustainable profit is the primary interest of a business entity and so we can say that BP,destroying the value hasn't satisfied human needs. It goes against the environment and all stakeholders' interests in the Gulf of Mexico. Monotonist view bring to unsatisfaction of people,to a addictional costs and in this case to a big disaster. 2. I think that Margaret Blair isn't against the logic of profit,since in the primary interest of a business entity we find the need to do profit....but in a sustainable way! BP didn't create profit following the Law. It didn't respect the environement and the social responsabilities. Profit is such a thing that becomes only after the statisfaction of human needs.
1.After watching the video, we can say that the BP crash has been caused by the maximization of the profit in short- term. If the entity isn't sustainable, it can't have a future. They wanted to save money in order to create value for the shareholders, and to increase the profit without thinking to the stakeholders and that's always wrong because it's a danger for the durability of the azienda. As a consequence, it's better to have more costs, but to think always in a long - term in order have an azienda set to continue. 2. Margaret Blair isn't against the concept of earning money, but an entity can't aim only to increase the profit . She only says that the profit has to be sustainable. This aspect is fundamental because it will have positive effects on the shareholders, the stakeholders, and on the firm itself.
In my opinion this video is the perfect demonstration of what could happen when managers or stakeholders take care only of profit maximization. Especially when the priority is to make money in a short term. As append for BP company: the leaders wanted only to make profit and in this way they cut off the proper safety measures which are indispensable for the survival and growth of the company. The BP’s managers didn’t create sustainable value, they destroyed value in order to save money. All these wrong strategy ended up with additional costs (14 billions) necessary to find a solution for this epic disaster. As Margaret Blair says the only way to guarantee the durability of a company is to invest not only in short term profit but mainly in long term profits, in other words the economic,environmental and social sustainability is fundamental for any business or no-business entity.
In my opinion Margaret Blair strongly believes in the logic of profit because it is determinant for the survival and growth of all the aziende. However she says that profit has to be obtained in the right way and often the maximization of profit needs time: If a company makes only short term investments, as happened for FB, it will never survive, growth, create value in the proper way.
1) This video shows us what could happen if a firm with its shareholders base their business in profit maximization. As Margaret Blair said the main cause of this distaster is the shareholders value thinking because they just didn't want to do long term investiments. They prefered to maximize their profit in a short term. The problem was that BP had to cut customers support, the number of workers and the investiments in research to save money and maximize profit. Those are all the causes of this big disaster that costed a lot of money to the USA ,to the BP but first of all it causes a big enviromental damage. Now they understand for sure that the best way to create profit in a sustainable ways is to satisfy human needs.
2) I think that Margaret Blair is not against the logic of profit because she said that she strongly believes in business. She is just against the profit maximization because is not a the right way to conduct a business. This logic is against the morality in the market and is against to the creation of profit in a sustainable way.
1) I think that this video reppresents the exasperation of the “shareholders’value thinking”. The only thing that company wanted to do was the profit creation in the short term, no matter how, it just wanted to increase the shares’value and the dividents for the shareholders. In this way it started to cut off a lot of money for the safety. Moreover, this video shows the bad results of this way of thinking: all the stakeholders (included shareholders) have been penalized and they will be penalized for a long time. 2) I think she is not against the profit but she belives in the sustainable profit for all the stakeholders and in the long term. On the other hand, she is completely against the profit maximization.
1) The video strongly focuses on showing how focusing on maximize the profit in a short-term does not pay of at all. It discusses one of the main topics that we are studying in this course, the differentiation between the shareholders theory (to only maximize shareholders profit) and the primary interest of the azienda that is to satisfy human needs, through the production of goods and services creating sustainable value in order to make profit thus to pay off all of its stakeholders. It’s obvious that it strengthens the second theory showing how in the past 20/30 years business in America has been done the wrong way.
2) I believe that Margaret Blair was mistaken for Lynn Stout, but anyways I think that she is not against the logic of profit, I think she understood how a business entity cannot only rely on a short-term business idea because this could mean major losses in the future, but it should invest resources in order to have success in a long-term.
For what concern the BP case, this video underlines and shows us what are the effects of carrying out a business in a short term prospective. In my opinion, The BP case can be considered one of the biggest catastrophes ever happened on earth, caused by the indifference and the idiocy of shareholders. To be honest, I don't think Margaret Blair is against the logic of profit, because she is an economist and she perfectly knows that the profit is the main factor that leads the entrepreneur to achieve his/her business, and to satisfy human needs. Anyways, We should distinguish between making profit in a sustainable or unsustainable way, and so between a long and short term firm. In fact, in my opinion, we can say Margaret Blair is against the logic of profit if we are considering an entity whose only objective is to maximize its profit and that doesn't care about being efficient.
Well, in my opinion the BP case could have been avoided if only the shareholders of the company would not have been so blinded and so attached to the thought of maximizing the profit for them in the short term. So, since this example is even too clear, I think that there is nothing more to say about this shareholder theory that is followed by many organizations all over the world.
Yes, I think that Margaret Blair is against the logic of profit.
The BP case demonstrate how could a business situation be risky and unethical when a publicly listed company gives a top priority to short term profits instead of a long and healthy sustainability. The oil's spill disaster occurred in the Gulf of Mexico proves the shareholder value thinking theory which is totally focused on the maximization of profits in a very short time neglecting the health of stakeholders, community, environment, common welfare, citizens and also shareholders due to the additional costs and losses addressed to the organization. BP's board followed the wrong way cutting safety corners in order to save money and trying to take a large advantage to the other competitors (for instance Shell and Chevron). Even if we are discussing about a trading company present in the market I think that this disaster can quietly tag them as useless organization which has made an incalculable damage to environment and in particular to this segment of the wide business world. Supposing an internal shareholders and stakeholders conflict which involved the suite of the company this case can also be used to highlight the importance of coherent short and long term decision making, and how that affect communication during an unexpected crisis. Furthermore the BP issue show us the importance of integrity at the top and the role of governance in reconciling economic and environmental sustainability.
Margaret Blair explains his point of view disapproving the logic of profits maximization underscoring the importance of a sustainable value creation in a long term to increase and improve the welfare of our life. That's what a good model of business is used to do in a correct, healthy and ethical domain.
1 I think that the British Petrolium case is the perfect example of a firm that would make higher profit in a short tirm which may effetct badly their long-term operations. Actually the ultimate reason of that disaster was the desire of BP to cut off safety corner in order to save 1 million each day without taking care of a sustanible drilling activity. This not only caused a huge enviromental disaster but also affected negatively all the stakeholder and competitors. BP didn't think that a short-term investement could be more risky than a long-term one and they ran out a non sustanible business based on the share holder 's theory in order to maximize profit. 2 I think that Margarait Blair is against shareholder's theory and short time investment that can cause damages for all the stakeholders but also for the firm itself. She believes in a business that creates sutanible value.
The video of the BP case clearly explains the how the economic market works. In this case, the BP, ignoring the hypothetical disastrous consequences with the their decisions focused on improving the short term income, came to the dramatic event of the April 2010. The point is that first of all the reasons why the shareholders decided to aim for the short term were strongly overcame by the enormous damage they caused: economical and social. So their economical loss was certainly superior of what they saved over few years, and they also destroyed the economy of the Gulf where it happens creating serious problems to other oil-refineries all over the world. Proving that one economic entity can incentivize the economic sector where it works as same as destroy it with wrong decisions. These decisions affect strongly also all the other stakeholders which in this case suffered tremendously of this event. Margaret Blair is clearly not against the logic of profit. As an economist what he want to explain is the importance of the decisions an Azienda takes which in a first moment could result extremely positive without taking into account the posthumous consequences. She supports the stakeholders theory.
1) The BP case video makes me ponder. It is emblematic of what could happen when unethical entrepreneurs run important business. If shareholders only think about the profit maximization reducing security measures, in short-term, it will damage the other stakeholders (the environment 'in primis') and it will bring extra costs and fines to the company in the long-term. 2) I don’t think Margaret Blair is against the logic of profit, but she is against the logic of THIS KIND of profit. Running businesses through an incorrect ethical conduct is meaningless and could cause lots of damages (economically and environmentally) to the firm's stakeholders if extended in a long-term period
1) The BP case is one of the possible extreme consequences of the so-called shareholder theory. The firm, in order to maximize the short-term profit, did not take care of the safety measures. This led to a disaster that firstly damaged the environment, then destroyed also the shares of the company. Every stakholder of the firm has been damaged by this behaviour.
2) I think that Margaret Blair promotes a fair market regulated by right laws. She is not against the profit for itself, but I suppose she is against the unfair profit.
1) I think that is really difficult imagine that some people just to have more power and richnesses are destroying the world.I hope that the BP don't imagined that consequences, when they cut the safety corner, because nobody may do something like that conscious of the risks.
2) Margaret Blair is probably on favor of the profit, on condition that it is sustainable.
1) I think that is really difficult imagine that some people just to have more power and richnesses are destroying the world.I hope that the BP don't imagined that consequences, when they cut the safety corner, because nobody may do something like that conscious of the risks.
2) Margaret Blair is probably on favor of the profit, on condition that it is sustainable.
1) I think that is really difficult imagine that some people just to have more power and richnesses are destroying the world.I hope that the BP don't imagined that consequences, when they cut the safety corner, because nobody may do something like that conscious of the risks.
2) Margaret Blair is probably on favor of the profit, on condition that it is sustainable.
In my opinion the bp case is the perfect example of how the shareholders ' theory is a failure. The sustainable profit is not only a choose but is a condition of existence for the firm as well. The maximisation of the profit and shares'value in the short term is a roinus theory.
Margaret Blair is on favour of the sustainable profit, taking care about the environment and respecting society and law. She believes in the long term value's increment.
1) This video sums up how poor decisions can cause disasters. BP case is one of the most famous ones, but there are a lot of business entities that have operated the same way: they have created value only for shareholders. In the business world, there should not exist shortcuts that effect negatively on the well-being of the other stakeholders.
2) Margaret Blair is not against the logic of profit, because without profit we wouldn't have business entities and without business entities we wouldn't have the fulfillment of our wants and needs. Instead, she is suggesting that business entities should not focus their vision on the short-term but on the long-term.
What about the video? It perfectly highlights one of the consequences to put the maximization of profit as objective of a firm. BP in carrying out its business activity do not take care of the sustainability of the value creation, nay the firm considered only creating value for the shareholders. This approach caused , on the april of 2010, an environmental disaster, risk you run if the company thinks only of profit maximization in a short-term. So this video underlines why it is more appreciable the approach that we study during foundamentals of business course: the objective of the firm is satisfy human needs creating sustainable profit for azienda itself and for all the stakeholders, in a short and long-term, following this way the firm is able to achieve the durability.
In my opinion Margaret Blair isn't against the logic of profit, but she supports the maximization of profit as not the primary interest of the azienda. Moreover we have to distinguish the logic of the profit in a long and in a short term, according to Margaret blair the profit can be achieved in a sustainable way and in the long-term.
1)After watching the videos , i can realize what the BP case.There is no doubt that the PC damage many social problem and the environment sustainable development in order to achieve it's maximize profit .Although it can come true the objective profit in short-time,it is more than 1 billion taken from the long -term.
2)Her claim in the lecture is correct. She explained the BP case comprehensively and detailedly introduced the long or short-term damage when the firm happened the accident .She definitely pointed that the company should realize the importance of a long-term development to maintain the company's well-balanced operation
1. The video analyzes the question about the duties of corporation thanks to Margaret Blair's explanation on what business and public corporation really are. She gives us the example of BP disaster in the Gulf of Mexico: it was the worst oil spill in the history and caused long-term negative consequences on the environment, on the citizens and on the BP shareholders itself. Margaret Blair points out that oil spill was the result of the so-called "shareholders value thinking": in fact BP has decided to cut safety corners in order to save money for shareholders wealth but at the end this policy leads them to sacrifice 100 billion dollars and to lose its reputation. 2. Margaret Blair starts by saying that business contributes to social welfare but only when it is structured properly. This means that business companies that want to maximize profit in the short term reducing workplace safety and not taking care about their employees are going to lead to failure.
1- The British Petroleum case seems to be one of many financial and economical disasters made by corporations in order to maximize their short term profit. They acted illegally cutting safety operations in order to save 1 million dollars per day, and they ended up losing 100 billion dollars and creating a disaster for the ecosystem of the Gulf. Bad management and bad shareholders, that's what led the company to this disaster.
2- Margaret Blair is not against the logic of profit. She's against the shareholder theory, but she's pro-business and thinks long term stability is more important than the short term profit. She looks to me almost as an economista d'azienda.
1) BP case shows how a business can fail if it does not respect all stakeholders. They did a great mistake by minding only about the short term profit, cutting costs on safety operations just to save an hypothetical profit. Unfortunately many firms nowadays have this shareholders view. 2) She is not against the logic of profit as she says at the beginning of the video. She is against short term business strategies aimed only to a maximization of profit. Instead, she thinks business is the root for building an efficient society and so she cannot be against the logic of profit.
1. In my opinion the BP case is an emblematic example of what happens if a firm supports the shareholder theory, so is therefore focused on maximizing the profit for the shareholder in a short-term. By disregarding the other stakeholders and not considering their wealth the corporations went through an inconvenient disaster, the oil spill. This tragedy had had long-term negative effects on all the people interested in the firm or in the gulf and also on BP's profit. 2. No, margaret Blair is not against the logic of profit, on the contrary she sustains an “intelligent” profit, considering all the stakeholders and focusing on the long-term.
1) in my opinion this video well represents one of the most important problem of business, when a firm wants to maximize profit saving money from something that will cause its decline. This was what happened to BP, the firm cut off safety corners saving 1 million dollars per day, but due to this choice they generated this disaster that produced 100 billlions dollars of losses. In this way the firm damaged itself and its stakeholders too, like the people living around the Gulf of Mexico.
2) Margaret Blair definitely is not against the logic of profit. She thinks to profit with a positive view, but what she wanted to underline was that profit is a positive entity if it is run in law; she pointed out that sometimes is not possible to maximize profit in the short term.
1. The BP case is a clear demonstration of what happens when the firm's objective is to maximize the profit for the shareholders in a short term, putting at risk the environment and as a consequence causing a natural disaster in the Gulf. 2. Margaret Blair isn't against the logic of profit, she believes business enteties are the basis of social welfare and efficient society. So she believes in a long term profit in a sustainable way.
1) I personally think that the video is very interesting and truthful. It describes in a perfect way how companies tend to behave recently. Cutting security's costs just to maximize your profit in a short term, is not just ethically wrong but it puts in danger the stability and durability of the firm, The BP disaster in the gulf of mexico is only the result of an immoral management. 2) Margaret Blair is undoubtedly not against the logic of profit, she's against the shareholder theory that damages many companies and their sustainability.
1) The BP case is a classic exemple of a firm where they want to maximize profit in a short term without thinking of the consequences that there will be in the long term.In the video we can understand that they cut safety corners in order to save 1 million each day but in the end they will have a loss for a hundred billion dollars. Furthermore it is also an example of a firm that doesn't respect the environment destroying a lot of other interests (i.e. fishing...).
2) I think that Margaret Blair isn't against the logic of profit, she knows that profit is very important for a firm. She says that profit must consider all the other interests, as sustainability, and don't have to be the more important thing, especially in the short term.
1) The BP case is a classic exemple of a firm where they want to maximize profit in a short term without thinking of the consequences that there will be in the long term.In the video we can understand that they cut safety corners in order to save 1 million each day but in the end they will have a loss for a hundred billion dollars. Furthermore it is also an example of a firm that doesn't respect the environment destroying a lot of other interests (i.e. fishing...).
2) I think that Margaret Blair isn't against the logic of profit, she knows that profit is very important for a firm. She says that profit must consider all the other interests, as sustainability, and don't have to be the more important thing, especially in the short term.
1) BP case is an appropriate example of the sustainability’s importance in the modality through which a firm creates value. The monotonist view about a corporation’s duties tends to put first the shareholder profit maximization and the short-term profits strategy, with the risk of not taking into account stakeholders: and since they represent the environment with which an azienda constantly interacts, they can be affected by its way of acting and in turn affect negatively or positively its survival. According to this consideration, it’s easy to understand why the BP’s strategy has led to an inevitable failure: the corporation decided to put off the proper safety measures in order to save 1 million dollars and increase value share in the short term, and in the end it lost 100 billion dollars and damaged both stakeholders and shareholders, because it didn’t consider at all the effects that such a choise would have produced on the environment and consequently on the long term health of the azienda itself. 2) I don’t think Margaret Blair is totally against the logic of profit, but rather that she doesn’t accept the maximization of profit at any cost and the idea of a value created without sustainability. Of course money are needed to the survival and growth of an economic entity, but they cannot be the “what” it pursues, because, as the video explains, this kind of strategy leads to the failure of the azienda itself and consequently goes against the interest of making profit.
1) I think this video really help us to understand why a business entity should have an ethical moral. We observed in the BP case, how everything is linked as in a chain. The BP chose to maximize shareholders' profit in a wrong way, before thinking to the consequences of this choice. Thus, that choice became a problem for all the stakeholders, but firstly for shareholders who lost a lot of money and people trust.
2) According to me, Margaret Blair is not against the logic of profit. She admires the firms who operate in the market creating sustainable value, because they are indispensable for our well-being. She's against the shareholders' value thinking and those who want to earn profit in a short time.
1) This video clarifies the fact that if one only think about maximizing the profit, no matter how long and how, the risk of getting broke is high. and it is obvious in this video that stakeholder theory is better than shareholder theory and runs less risk of losing. 2) Of course not. not only she's not against the logic of profit, but also she describes profit in a logical and wise way. that sometimes , in order to get sustainable and assured profit in long term periods, you must not try to cut the expenses and costs of safety of your firm. So, if you take care about the safety and try not just to create profit fast, it would guarantee the survival of your firm.
1) The BP case is undoubtedly the proof that some corporations do not act ethically and so they separate the ethics from the business ,which should linked and used togheter. " The BP example is given to understand how the mistakes over the past 20-30 years have impeded the ability of business to make our lives better". This fact evidences how people think about their own interests and shareholder interests ,neglecting the external environment , in order to save money and as in this case , cutting safety corners which could have prevented this massive disaster. From my perspective if we want to conduct a safety and sustainable business for the azienda itself and for the environment, we must not be SELFISH and spend the adequate money on the right things, doing so the right thing to do. 2) Margaret Blair is not against the logic of profit , she belives "the business is about improving our lives" ,of course just if it is conducted in the right way .As in the BP case she is against the shareholders value thinking ,that unfortunately posses the business world today.
1)So big disatster happened just because BP wanted to cut safety corners to save money! Its really horrible,but unfortunatelly many companies nowadays put on the 1st place their profit and they are absolutely unethical. As the result BP lost 100 billions dollars in shareholders wealth and destroyed ecology of that region for many years. 2)I think, that Margaret Blair isn't against the logic of profit, but she is absolutely correct, that companies shoudn't put it on the 1st place.
1.From the video we see what happens to company that only take care to the profit for the short term, and like in the B.P company they saved money on capital and in the end polluted the environment. From this company wrong decision we learn that we always need to think about the long term and the environment of our company. 2. I don't think that Margaret Blair is against profit, she just want to show that we have to consider our environment because is most important thing for us. You can earn profit as long as you don't damage the environment .
In my opinion the BP's case is the worst example of a strategy to conduct a business. They've been harmful for themselves, for the environment and for the whole society. They thought only to maximize the profit in a short-term, not caring about security of their employees and all the other stakeholders, and so they have provoked long-term damages for the shareholders and stakeholders. I think that Margaret Blair is against the logic of profit if we intend it as the maximization of profit in a short-term, without caring about consequences.
In my opinion the BP's case is the worst example of a strategy to conduct a business. They've been harmful for themselves, for the environment and for the whole society. They thought only to maximize the profit in a short-term, not caring about security of their employees and all the other stakeholders, and so they have provoked long-term damages for the shareholders and stakeholders. I think that Margaret Blair is against the logic of profit if we intend it as the maximization of profit in a short-term, without caring about consequences.
1)In my opinion the BP case follows the logics of extreme capitalism and short-term capitalization, it's a perfect example of what can happen if you are only concerned about the present without thinking of the future and of all the possibilities that can come true. The company was so stuck to the profit that completely didn't mind of the secondary stakeholders, like the environment. This case should be studied to allow future managers to don't follow those caitiffs steps. 2) Is Margaret Blair herself in the video to answer this quest, in fact she says that many people think she is communist while she isn't; more properly she is a business woman who tends to "create a sustainable value" in order with moral principles of which everyone should be endowed and with the law. For her the profit is important but it depends on the way it's achieved, in fact profit must be achieved not necessarily in a short-term but also and even more appropriate in a long-term, allowing the business to grow up in a sustainable way.
1.In the video is shown how focusing on the maximization of profit in short-term, could cause a disaster. The BP case is a result of the shareholder theory, the firm did not focus on the long term effects and on a sustainable profit, but just on short-term profit so it causes a damage for all the stakeholders. 2.I think that Margaret Blair isn’t against the logic of profit but she’s against the unsustainable profit, she believes that a firm should not just care about the maximization of profit in short-term and it should take care of all stakeholders and not just of shareholders.
After watching the video on the BP case, I strengthen my opinion on the sustainability of the profit. On one hand, it is true that shareholders are the first to bear losses, therefore they are the first motivated in conducting the business with Economicità, even because their remunerations are not protected by contracts, as for the other stakeholders (see debt holder). On the other hand it has to be said that sometimes profit, improperly influences our overview and our “economic skills”. A short- term profit maximisation, is almost always in conflict with the concept of sustainable profit. The example of BP provided is perfect: they tried to increase the profit in the short term day by day, but the final loss showed how this was a complete failure: the condition of value creation was missed. A failure for the Azienda, as shares went down. A failure for the environment (remember that “what goes around comes around”). A failure for the entire US economy. A disaster for tourism and activities like fishing. This was totally against the first level of Carroll’s pyramid: be profitable for the entire lifetime of the Azienda. Moreover, as said in the video: people put their money and trust, in sustainable companies.
Margaret Blair is not against the profit, as she said in the first part of the video. She probably agrees that the profit is both the condition to be met in order to satisfy human needs, and the main extrinsic motivation for the entrepreneur. But the azienda, as a common good, has to achieve its primary interest, and as a systemic coordination of parts and participants, all of them must aim to the same objective: the satisfaction of certain needs (the WHY), and the achievement of the condition for survival and growth. And the only way to pursue this, is to work on a sustainable profit, linking the economy with society and environment.
1) In my opinion the BP case is the best way to explain what real business is. In fact as we know we don’t have just to make profit, that is not enough, we have to make SUSTAINABLE profit in a LONG TERM and that is exactly what BP company didn’t do. The BP company decided to cut safety corners just to make profit in a short term (day by day) and what was the result? The oil well exploded. BP company cut the safety corners not analyzing what consequences there would have been. From this we can learn that, when we cut something we have to think about the consequences. Now the gulf of Mexico is polluted and all the activities around there cannot survive because, for example, none want to buy fish, none want to swim there, none want to go there during their holidays etc etc. . The BP company not only destroyed itself by having to pay the huge compensation, but it also destroyed the other activities around there.
2)I don’t think that Margaret Blair is against the logic of profit in general. I think she is against the logic of profit of the companies, as BP company, that want to make a not-sustainable profit in an egoistic way, not thinking about the negative consequences. I think that Margaret Blair is of the idea that to make profit you have to do it in a long term sustainable way
1)this would be unprofessional to decrease the quality or the quantity of the input to gain more profit , but this would be unprofessional and also senseless if this is about safety and security . in this case , their fault caused not only failure for the company but also had negative effects on the environment and other people .
2)i think that Margaret Blair is against this idea that we could increase our profit without being worry about its consequences and risks in long term .
1)this would be unprofessional to decrease the quality or the quantity of the input to gain more profit , but this would be unprofessional and also senseless if this is about safety and security . in this case , their fault caused not only failure for the company but also had negative effects on the environment and other people .
2)i think that Margaret Blair is against this idea that we could increase our profit without being worry about its consequences and risks in long term .
1) The BP case perfectly shows how dangerous could it be to put the profit maximization as the objective of the company. The BP company cut off safety corners in order to save one million dollars a day, but it ended up sacrificing a hundred billion dollars. In this situation the BP's manager was driven by what Margaret Blairs calls the “shareholder value thinking”, in order to create a high value for shareholders in very short-terms the company damaged all the other stakeholders and the shareholders' long-term interests. 2) I think that Margaret Blair is deeply against the share holder theory and she wants to point out the “dreadful mistake” of the past twenty-three years which consists in focus on the maximization of profit misunderstanding what business really is. Moreover companies, giving an exaggerated attention to the short-term share price, fail to take adequate care of their stakeholders and this can lead to serious loss also for the shareholders.
1) The accident caused by BP can be certainly called a tragedy. 11 people died, thousands were damaged in too many ways and we can't tell how many animals died as well. Margaret Blair said that the cause of it was BP's choice to save 1 million dollar a day by saving on safety accessories needed in order to drill safely. I'm sure 1 million dollar a day is a big amount of money even for a company as big as BP, but they made the worst choice of this world by risking what in the end actually happened, and they ended losing an insane amount of money, but more importantly they ruined the lives of hundreds of people, and this is a risk that shouldn't be taken no matter what amount of money is on the table.
2) I personally think that Margaret Blair is only partially against the logic of profit because she said that profit is important and above all businesses' survival is important, but she is 100% against the profit as the objective of the firm. She embraces the "stakeholder theory" over the "shareolder theory" and says that a firm should be responsible for its own action and should never let profit put in danger other stakeholders.
1) The BP's oil disaster is for sure one of the finest example that we can find to define what an organization could do if it thinks and act in short terms. As explained in the video, the choice of reducing founds for safety corners in order to save money has been the worst idea that the company could ever had. Doing this they focused on the short terms profit saving 1 million of dollars per day but then, when accident happened, they end up on sacrificing more than a hundred billions dollars in shareholders wealth alone. The net loss here is clear as the loss of popularity. This makes us understand that when you have an azienda, either if it sells goods or services, there is a lot of factors that you have to take care about and that come before the instant profit.
2) No I don't. I think that she repudiates the short terms profit. She knows what real profit is and so in the video she explains where some wrong choices as a company could bring you, underlining all the damages that you can create to a lot of different aspects (the company's image, the shareholder, the stakeholders and so on) which you have to respect as a manager, as a owner and as a person who works in the business.
1) Like said in the video, businesses can only improve our lives if they are structured properly.A business like BP that thinks only about short term profit maximization is not properly structure. By cutting corners, 11 people were killed and the Gulf may never be the same. BP is a perfect example about what the idea of profit maximization can do to a company, through their methods the company lost 100 billion dollars to save millions. It is a perfect example of not to do business.
2) She is definitely not against the logic of profit, i believe she is however against the idea of profit maximization through any means necessary and short term profit maximization. One could therefore argue she is against the shareholder theory. She is a believer in profit but only if it is achieved with ethics.
This video makes us realize how much the business logic of the last 20 - 30 years drove us to think only about profit no matter in which way, if sustainable or not. The tragedy occurred with the BP case hugely harmed an unthinkable amount of people, places, workers, employees, aziende and last but not least the environment itself which is what should be respected at any cost since it is a gift of nature that we cannot posses, the land we use for our activity will only and always be a rent and for this reason we must respect it. I understand a million a day it' s a pretty consistent amount of money for any azienda in the world but the lives lost and the damages caused are not worth any prize.
Margaret Blair is definitely not against the logic of profit, she looks for profit but in a reasoned way, which means that if a determined business decision leads to a bigger profit today causing future losses and damaging the future azienda's stability it must not be taken.
1-This video is the perfect demonstration that if the profit maximization is the main objective of the firm whitout taking care of the environment, the firm could have a good short term profit but in the long term it may have many problems. 2-In my opinion Margaret Blair is not against the logic of profit. She is for a profit in a sustainable way and in a long term. She puts the environment and the azienda in the first place before the profit maximization
1= What I got in vedio is that" we should not only concentrate on profit maximization.Environment is also improtant.If you don't concentrate on environment you might run your business for short time but you can't survive for long term".
2= NO she is not against logic of profit.She only prefers envionment and long term business over profit maximization.
1) For what concern the BP case, this video best represents the huge problem that exist in big corporations: maximize the profit in a short term. Margaret Blair underlined that this is the realistic way of thinking of shareholders: to maximize profit if possible also for tomorrow and not in 5 or 10 years. The BP company was saving 1 million dollars a day loosing after the disaster more than 100 billion dollars destroying the share’s value. No company in this world can think to maximize profit in a very short term, let things take their course !! 2) In my opinion Margaret Blair is not against the logic of profit, instead she sad “business is improving our lives”, she as an economist knows perfectly that everyone on earth will run a business to get profit from it. But what she said is “market can not exist without law and business can not exist without law”, so everything must be done following the law, creating sustainable value not acting as BP company did.
BP case properly is a huge mistake made by its firm. Wrong discussions not looking at the consideration of other stakeholders but a selfish interest . Though I could say it's a huge lesson to other organizations and will make them to reason very, well putting in to consideration the negative aspects of it.The primary interest of an Azienda is be to satisfy the customers and create sustainable value but BP lost its value,deprecated ,harmed ,killed 11workers, took a bad record in the world, loss 100 billion ,75 percentage of living creature in the ocean died, leaving the fishery industry, customers , employees and other co operations in a loss.All in the save money each day 1 million each day well they eventually loosed more .it was just a very bad idea to have acted on this discussion cos alot at loss not just them but others. 2)I don't think so , I believe she is trying to pass a massage along i.e if a business should be established it should take into consideration the value of others such as employees,stakeholders, customers,environment,e.t.c and should be structured carefully. If the BP organization have had a careful consideration there wouldn't have been any need for this great loss to have occurred. Trying to save a million dollars. And I think she did a great job because any future manager sitting there who have learnt from what she said.
Andrea Murri 1_ It is certainly clear that the BP case brought to our attention it is an example of business failure, both from the economic and ethical point of view. The disaster occurred it is only the ultimate cause and effect of reckless actions took by the BP managers in order to speculate and make the highest profits. Underneath the real problem that came up is the maximization profit logic that most of the biggest oil multinationals use to get their profit up in the short term, without considering the enough amount of time required in order to produce a positive net present value. 2_ I think Margaret Blair is not against the logic of profit as she talks about how business can contribute to make a successful society, although she drives our attention on how the free market can be shaped and she tries to give a warning that market without law cannot exists in the interest of society to prevent the market become a place where the strongest man takes what he wants.
1- British petroleum is one of many cases where a firm demostrates to take care only on profit maximization in short-term, causing a lot of risks; so it shows how it is unethical. 2-Margaret Blair says that is not against the logic of profit,because it's one of many important factors for the entities for the growth and survival; but she says that a firm has to follow the logic of profit in a sustainable way in economical, social and environmental sectors, for profit or not profit entities.
8) 1) The BP case is environmentally irresponsible. It could determines the extinction of rare breeds, but, above all else, it's economical and ethically incorrect. They basically sacrified the environmental for cutting safety costs. This is what could happens if somebody/something try to follow the logic of short term profit maximization ( cheating ) rather than long term business. 2) She's not against the logic of profit, she's just against the logic of short term maximization.
8) 1) The BP case is environmentally irresponsible. It could determines the extinction of rare breeds, but, above all else, it's economical and ethically incorrect. They basically sacrified the environmental for cutting safety costs. This is what could happens if somebody/something try to follow the logic of short term profit maximization ( cheating ) rather than long term business. 2) She's not against the logic of profit, she's just against the logic of short term maximization.
1) The BP case definetely depicts and underlines the weaknesses of having the maximization of profit as objective of the firm. Clearly, British petroleum company, was not considering that ,by saving money in a short term of time, therefore creating profit for shareholders right away, they undermined the durability not only of the shareholders profit, but also of the entire firm itself. The video highlights the importance of onsidering stakeholders that commonly do not have a voice in decisions, such as the environment. 2) Margaret Blair is definetely not against the logic of profit, but she realizes that the logic of profit cannot be the goal of a firm.
1) BP case was the oil spill disaster in the Gulf of Mexico. In my opinion , this video give us main concept of business that one wrong decision makes huge damage our environments and society and entrepreneurs may face huge loss 2) No , I think Margaret Blair is not against the logic of profit. she stressed controlling the ecological disaster rather than making profit at the sake of environment. She also stressed the necessity of business in the process of building better society but it should be within the legal framework of the government and environment.
1) The video explains briefly how the BP oil spill disaster has had negative outcomes on many (if not all) stakeholders, and in first place the firm itself: as a matter of fact, it has been said that this disaster was caused by the negligence on BP's part by cutting off what they considered being "excessive costs" (especially employee safety in this case) in order to maximize the profit of the shareholders in less time possible (monotonist view), according also to the shareholder theory
2) Margaret Blair is not against the logic of profit, as she explains in the beginning of the video, she is just against the logic that BP took into account, that is maximizing shareholder value in a short term, that eventually ended in a huge loss for the shareholders themselves (but not only)
1)The BP case is a clearly example of how some organizations don't act efficiently and effectively. In fact running a business in an incorrect way can cause lots of problems as in this case that it brought to a dramatic event,since they thought to maximize the profit in a short term ,not caring about the external environment and the consequences that it could have brought in the future. 2) I think that Margaret Blair isn't against the logic of profit,but she thinks that profit should not be seen as the most important thing for the firm especially in the short term. So,she supports the maximization of the profit as not the primary interest of the azienda.
1) The British Petroleum operated in a dreadful way, without taking into consideration its social responsibilities. As Margaret Blair pointed out, the company followed exclusively the logic of profit: saving and retaining money without ensuring safety of their operations to avoid potential damages to the external environment and the community that are fundamental stakeholders to the company. 2) Margaret Blair does not go against the logic of profit, instead she affirms that profit is an important element for the continuity and growth of a company. But the latter must not retain profit considering it on a higher level that that of the stakeholders, since, as she stated, successful businesses have as their primary interest the creation of value for the stakeholders (whose interests in the firm's business is essential) and the "improvement of our lives".
1) BP was being environmentally irresponsible as they created pollution trying to cut costs by ignoring safety concerns while ignoring the interest of one of their main stakeholders (Environment and the community), harming the industries that had a relationship with the gulf. The effects can even be seen now after 2 years, even though BP spent 14 billion dollars, they still failed to prevent the negative externalities. This oil spill could have been prevented if BP spent a million dollar per day for safety concerns. 2) Margaret Blair argues that firms priories Shareholder value thinking, she argues that firms should think of the long term value creation for the society and take interest of all stakeholders into consideration. She says that most large firms fail to make long term investments, and ignore the interest of most stakeholders, much of the lost is carried by the costumers and employers and not by the shareholders.
1) The BP case is probably the most damaging oil spill in history, it left people who live near the Gulf and also people who has only the Gulf in order to live, a very bad condition(environment).The cause of this catastrophe is the desire of the owner/s to maximize profit which is in my opinion not a crime, but the fact that the business put first the personal desire rather than the concern of the community is an awful decision.
2) I don't think Margaret Blair is against the logic of profit rather than she wanted only to remind entrepreneurs to take all the considerations regarding the business for example employees and environment on making decisions.
1)This video explains how an entity should NOT operate. The British Petroleum in 2010 took a decision which only sight to the profit maximisation . This wrong decision caused the pollution of the Gulf which became a really catastrophe. 2) According to me Margaret Blair is against the logic of profit because this kind of thought bring only to takewrong decisions which will demage environment ,customers and also the entity itself
1. BP has demonstrated to be one of those companies that are only concerned with profit, rather than the satisfaction of the stakeholders. What happened was given by their focusing on a shot term profit, ignoring safety, so that they could have saved money, even though they were putting at risk an entire ecosystem, that is the one of the gulf of Mexico. It is sad to see that there are companies that care more about profit than stakeholders, since all the stakeholders in the gulf of Mexico ended up being damaged by this disaster. 2. To my mind, we cannot say that she is against the logic of profit, I would rather affirm that she supports the idea of "sustainable profit", electing safety and stakeholders' satisfaction as the main basis which profit has to be built.
1. BP has demonstrated to be one of those companies that are only concerned with profit, rather than the satisfaction of the stakeholders. What happened was given by their focusing on a shot term profit, ignoring safety, so that they could have saved money, even though they were putting at risk an entire ecosystem, that is the one of the gulf of Mexico. It is sad to see that there are companies that care more about profit than stakeholders, since all the stakeholders in the gulf of Mexico ended up being damaged by this disaster. 2. To my mind, we cannot say that she is against the logic of profit, I would rather affirm that she supports the idea of "sustainable profit", electing safety and stakeholders' satisfaction as the main basis which profit has to be built.
1-The video underlines what are the consequences of carrying out a business in a short term prospective thinking only about the profit maximalization. In fact, the shareholders in order to save 1 million dollars per day cut safety precautions and then they had to sacrifice 100 billion dollars in order to recover the disaster. Not to mention the fact that though, the harm to the environment are now irrecoverable.The Gulf of Mexico habitat is destroyed and no money will ever heal it. 2- Margaret Blair is not against the profit. She exactly knows that profit is the driving force that motivates all business entities, but she is against the logic of maximalization in a short term. She thinks that free market is an oximour, a free market is the place where the strongers prevail over the others and take their personal interests.
1-The video underlines what are the consequences of carrying out a business in a short term prospective thinking only about the profit maximalization. In fact, the shareholders in order to save 1 million dollars per day cut safety precautions and then they had to sacrifice 100 billion dollars in order to recover the disaster. Not to mention the fact that though, the harm to the environment are now irrecoverable.The Gulf of Mexico habitat is destroyed and no money will ever heal it. 2- Margaret Blair is not against the profit. She exactly knows that profit is the driving force that motivates all business entities, but she is against the logic of maximalization in a short term. She thinks that free market is an oximour, a free market is the place where the strongers prevail over the others and take their personal interests.
1) My opinion is that we live in a world that constantly demands things now, rather than later. This societal problem seeps into business, as its influence becomes entwined with business, as this makes a business be short term profit oriented (as described by Margaret Blair in her hypothesis: shareholder value thinking) this is also an example of conflict of interest that takes place when the desisionmaker puts the company's sustainability on the line by cutting corners to have shareholder value growth. Ecological systems ruined, the marine biome changed forever, and I for one, understand that to be the biggest loss. Forget the money, think of the seven species which are driven to extinction by the oil spill like the North Atlantic blue fin tuna, sea turtles, sharks (and the patterns they follow, subsequently pushing them to other marine biomes, increasing the predator number and decreasing another by the fact that there are more predators) dolphins, brown pelicans. Then think of the Gulf stakeholders, etc. This is economically, biologically and socioeconomically the worst human disaster ever recorded.
2)Margaret is not against the logic of profit, but is against unsustainable short term profit that puts a company's survival on the line.
1. My opinion this BP case is one real life business mistake that not only damaged environment and had catastrophic effects on the nature, but also cost the company millions of dollars. I have read many case studies and articles about businesses which make this major mistake: for the short-term benefits they don't take in consideration side effects and risks of certain things. On the example of BP we can say that its share holders refused to spend extra money for the security and ended up giving billions after the explosion, further more with bad reputation among the customers and killing some of the workers. In my opinion BP case should be example for other businesses who try to minimize the costs on behalf of the security. 2. I do not think that Margaret Blair is against topic of profit, she states that businesses should earn profit. However they should consider long term effects as well as short term.
1) My opinion on the video Who’s Minding the Store is that I agree with Margaret Blair because companies cannot cut safety corners of operations, because cutting this safety corners might end up in big loses, affecting stakeholders, and loosing relationships with stakeholders. One must think in favour of all the stakeholders. 2) I don’t think Margaret Blair is against the logic of profit what has happened says it all, this company was not having ethical and humanitarian principles.
1. British Petroleum Case is a clear example of a business which is based on the shareholders' theory. The disaster happened because BP did not care about stakeholders, but it cared about shareholders and maximization of the profit in a short-term. As we know, this disaster did not only demage the entire activities of the Gulf of Mexico, but it affected also BP's shareholders who had to pay billions of dollars to clean up the environment. Nowadays the Gulf of Mexico is still affected by this disaster which happened in 2010. 2. I do not think that Margaret Blair is against the logic of profit, because without profit is difficult to establish a durable business, but I think she is against the shareholders' theory, because it is impossible to start up a successful business if you do not create a sustainable value in a long-term.
1)This video explains how an entity could damage the environment. The British Petroleum in 2010 took a decision in order to make a profit maximisation and this give us a clearly sight of the Shareholder's theory. This decision had been the caused the pollution of the sea which became a really catastrophic thing. 2) I don't think that Margaret Blair is against the logic of making profit, but i think that she just wants that every Owner or manager takes care of every consequences of their decision.
1)The case of BP is a prime example of what can happen to a company if the first and only interest of its shareholders is to maximize short-term profit , without taking into consideration the interest of stakeholders and consumers in general . Unless we focus on the development of the company and on its preservation , disasters like the one of the Gulf of Mexico could happen. 2)In my opinion Margaret Blair is not against the logic of profit, but she wants tho emphasize that in the attempt to maximize profit , shareholders must act in a sustainable way, without affecting negatively the company
1.) The BP case is a perfect example of what happens when a company aim to do short-term investments, thinking only about the profit-maximization cutting safety operations so without fulfilling all stakeholders expectations. 2.) Margaret Blair is not against the logic of profit, she just points up that an organization has to act in a sustainable way, thinking in "a long-term vision" terms achieving stakeholder's expectations. "customers do not like firms that act inconsistently with their own social desires". In conclusion, a profit earned with short-term investments can be faster, but the value created risks to be less consistent and durable instead of a value created in a sustainable way over the long-term.
The environmental disaster of the oil rig Deepwater Horizon , affiliated to British Petroleum , was one massive oil spill in the Gulf of Mexico following an accident involving the Macondo Well , located more than 1,500 meters deep . The spill began April 20, 2010 and ended 106 days later , on Aug. 4, 2010 , with millions of barrels of oil still floating on the waters in front of Louisiana , Mississippi , Alabama and Florida , as well as the heavier fraction of oil that formed clusters mileage on the seabed . the BP is a company inli concentrated in the short term investment and don't think to the sustainability of it actions. Margaret blair has put the spotlights to the sustainability of the profit for the survival and growth of organization.
1 BP case is a clear evidence of how bad actions and conduct can only lead to worst situations. thinking only to maximize shareholders profit in the short-term without thinking to the stakeholders, brought the company not only to pollute the environment in such a critical way, but also to a $100 million debt. 2 Margaret Blair is not against the logic of profit, as long as the company respects its primary interest, conducting a sustainable behavior, thinking to the long-term survival
1. The BP case is the perfect example of what an azienda should not be: as we studied, the primary interest of an azienda is to satisfy human needs, creating sustainable profit. The BP, instead, focused itsself only on the shareholers' interests maximising profit in short time, cutting safety corners. In order to do that, the BP didn't think about a good strategy to reach its goals because destroyed everything: environment, the ecosystem; it jeopardized its workers' life causing 11 dead; it caused additional costs; it was a bad for the fishing activity, fot thee tourism etc. 2. I don't think that Margaret Blair is against the logic of profit beacuse, as she said in the video, she adores business and doesn't believe that successful societies can exist without a thriving business sector and I agree with her. What she is saying in the video is that a business entity must be runned respecting the law and with a long term persepctive and must be focused not only on the interest of the shareholders, the stakeholders and of the firm itself.
1)The BP is the example of how a business should not be run: pursuing the profit maximization in the short term and do not acting in the interest of all the stakeholders (in particular the enviroment which is one of the primary) could indeed be dangerous for the company itself. In fact, the BP cut off the safety corners, in order to save 1 million dollars per day, but this brought to a loss of 100 billion dollars and an enviromental disaster for the Gulf, but also negative effects for all the people and companies acting in the Gulf. 2)I don’t think that Margaret Blair is against the logic of profit, to the contrary, she’s against the pursuit of the profit in a short and unsustainable way. What she means, is that profit is of course essential for a firm, but it should be made in a sustainable and responsible way, taking care of the interest of all the stakeholders, expecially the enviroment.
1)After watching the videos , i can realize what the BP case.There is no doubt that the PC damage many social problem and the environment sustainable development in order to achieve it's maximize profit .Although it can come true the objective profit in short-time,it is more than 1 billion taken from the long -term. 2)Her claim in the lecture is correct. She explained the BP case comprehensively and detailedly introduced the long or short-term damage when the firm happened the accident .She definitely pointed that the company should realize the importance of a long-term development to maintain the company's well-balanced operation
1) This isn't the only case they had an oil spill, but it's the most famous. This is an example of how business entities do not create value for its stakeholders. What they actually do is create profit for them selves and they don't care about the environment.
2) I don't think Margaret Blair is against the logic of profit, because creating profit is important for the existence of the business entity. What she's trying to say is that organizations should care more about stakeholders in the long term
I think that the BP case is one of the best example of when a company decide to operates in a distructive and detrimental way, without taking care of the its social, moral and legal responsabilities, without the respect of the safety rules and when a company put as its goal the maximization of the profit. The BP case demonstrated the consquences of operate without taking care of the long term effect of the actions, of the conseuences on the external environment. I don't think that Margaret Blair is against the logic of profit but I think that she strogely belived that is important to make profit in a sustainable way, to achive the condition of survival and growth of the business entintity in the long term, respecting laws, and morality.
1) I think the BP case is a perfect example of a business that focused sorely on the profit maximization for shareholders and not for the firm itself and all it's primary stakeholders. The mistake made by BP unfortunately is common and is a short-term profit mentality used by most firms today. BP was trying to limit expenses and in doing so we're cutting safety measures which brought them to cause the worst oil spill in the history of humanity and didn't only damage the ecosystem of the Gulf of Mexico and all the tourism and business activities present, but it also affected BP's shareholders who had to pay billions of dollars to clean up the environment. 2)I'm positive Margaret Blair isn't against the logic of profit, she is actually explaining how to ensure a business's survival in the long-term perspective by avoiding the shareholder's theory.
The British petroleum accident caused a lot of problems to the BP. ..this accident caused a huge economic loss to the stakeholders and had a negative impact on the public opinion. .this accident also made the public opinion to question the responsibility that every company has towards the environment,obviously the companys safety was questioned. .. Margaret Blair thinked that the profit is necessary for the azienda continuity. .but she believed that the profit have to be gained with an ethical management of the azienda by the stakeholders
Moral is not about acting in a proper way when someone is watching you,is about doing the right thing because you cannot do it otherwise. Self development steadily,understanding why there are rules to be followed and,most of all, implementing inner norms you have imposed by yourself on yourself,pushing your personal integrity and behaving ethically are by far one of the most important lessons higher education cultivates in you.The purpose of the higher education is not only to make you learn something new about the area you are orientated, but also to push you and help you become a better person,with high morals and more clear vision. "Customers prefer to do business with managers they see acting consistently with morality"/ "One of the ultimate causes of the BP oil spill was shareholder value thinking.Shareholder value thinking possesses the world nowadays.And it drives executives and directors to focus relentlessly on trying to get their share price up not to 5years from now,but tomorrow,if possible". In the video it is well explained what decisions a manager should never take and that if you act in an unadequate way,unethical way, you and you company will suffer damages(as example-to save 1 million dollars a day, the BP company lost 100 billion dollars with damages on the environment in general,customers,etc.) Business is about improving social welfare,not about increasing your profits in a non-ethical way.If we understand the purpose of the business in a proper way,if we find out that one's welfare should not be a reason for another person's barely survival, we would be more successful. Margaret Blair is not against profits ,of course, as long as profits are achieved in an accurate way.
Bp oli has for sure done a critical mistake. If you choose to save many in safety, you can earn more money today, in a year, maybe for ever and nobody could find it out. But if something happens ( like in this case), You will have to pay for the consequences. This topics reminds me the diesel-gate scandal of Volkswagen. Firms that don’t care about nothing but the profit maximization don’t deserve to exist! And for sure, they will pay for that.
About what Margaret Blair said, I believe she sends a very important message about her vision of profit: The firms should not just be focused on the profit, their core goal should be the VALUE, which is a very different aspect, not only for the firm and the shareholders, but for all the stakeholders.
Margaret Blair Does not against the logic of profit because at first of video she says:” I love Business” and if she loves business she loves the profits which we can earn from them. Her idea is the base of the concept of Azienda she thinks that a a Business must provides to satisfy human needs and to have a great costumer satisfaction. An example of Monotonist Business id BP. They had worked to maximize profits in short-term period. This led BP to a disaster for Environment at first and for Shareholder. I think that a good structure and a good safety is the base of a great business, the profit maximization is very important but the way to reach it is important as well.
1) The BP case shows as the maximization of the profit in the short term cannot be a way of act for an organization. This petroleum organization wanted to maximize the profit in a short term for shareholders but didn't care about the impact that this choice could have with the other stakeholders such as the tourism in that area, the situation of the ecosystems but also of the workers and inhabitants. It's impossible to understand how the idea of secure profit in a short term can overcome the awareness of a so terrible disaster by any point of view, economic, social, environmental etc. 2)Margaret Blair is not against the logic of profit, but in this video she wants to make clear as in the business is not acceptable the logic of the maximization of profit in a short term at the expenses of all the stakeholders of the organization.
1.) The BP case shows that the company concentrated on the profit maximization without concentrating on the interest of the stake holders and also on the environment,for saving 1 million dollars per day it has created a big disaster,for recovering it has costed 100 billion dollars,it has concentrated on the short term profits but it has effected long term. 2.) in my opinion Margaret blair is not against the logic of the profit but she says that the logic of profit does not effect the nature and the environment and to concentrate on the interests of the stakeholders,business should not concentrate on short term profits which effects the environment.
The British Petroleum case is an example of an extreme profit-maximization logic orientation. This often leads to an unethical behavior and to the misconducts of the managers,so the company doesn't perform in a sustainable way. This kind of logic, moral considerations aside, can also bring to high risks, for example the high costs that were due for the disaster and moreover the dangerous environment where employees work everyday.
I fully share Margaret Blair's thought. She is not against the logic of profit, as it is impossible for any for profit organization to survive costs if not exceeded by revenues, But the logic of profit, can't exist without respect to laws, environment, workers etc. Firms must be responsible and operate in a sustainable manner, with due consideration to every stakeholder.
1) In my mind,this video best represents the main concept that we analyze in the fundamentals of business course. It shows that BP case has caused long-term damages to many stakeholders involved in the firm( especially the environment). That derives from what Margaret Blair defines ''the shareholder view that possess the world today'' in which shareholder in order to save 1 million dollars per day they cut off safety corners but that lead them to sacrifice 100 billion dollars.
ReplyDeleteSo,what is important to underline is that the profit maximization of the firms in a short-term might cause several damages not only to the firm involved but to many others elements link to that. In addition, the profit maximization in short-term is not always bad but it depends on what kind of firm we are talking about ,i.e the BP , that should think about which type of consequences could have with bad management .
2) As far as i'm concerned, i think that Margaret Blair is against the ''shareholder view'' that is why she is against the logic of profit maximization in a short-term.As she explains, the problem today is that many organization born with this idea on achieving money in one-two months or even tomorrow but this leads to huge losses even for the shareholders themselves.
1.The BP oil spill disaster apparently caused huge damage both environmentally and economically. I think this case we can refer to shareholder theory,because of the interest to maximize the profit, without considering interests of different categories of stakeholders and also external environment. So they took the risk in order to save a million dollars per day, but failed by losing 100 billion for the caused damage.
ReplyDelete2. I think she is not against of the profit, she just wants to point out that the business entities should take every detail into consideration, take care of the customers and employees, not make poor decisions in order to have the long term effect, which will benefit both the shareholders and other groups of stakeholders.
1. In my opinion this video gives us the idea of what can happen to a business if it just takes care of the interests of the shareholders. It explains really well the logic which is beyond big corporations: they just want to maximize their profit in a short term. And if this means to reduce "useless" costs ( like the BP with the safety plan in case of an oil spill) it doesn't care.
ReplyDelete2. I totally agree with Margaret Blair's thought. She definitely isn't against the logic of profit, she truly believes that the world's economy cannot be based on the social model. In her opinion business entities should operate respecting the law and with a long term prospective. A business should not take care just of the shareholders but even of all the possible stakeholders.
1. After watching the video about B.P case, I can say that the B.P company was trying to save money by cutting safety corners without taking into consideration that a disaster like this might happen one day.
ReplyDeleteB.P was trying to maximize their profit for the short term by putting in risk the shareholders, the employees and the environment, things that don't serve the main need and want of an organization (satisfy human need). in order to trying to save money (1 million $ for a day) they lost 100 billion $ in shareholders wealth.
2. I think that Margret Blair is not against the logic of profit, but she's against maximizing profits in any term (long or short) in any price. what she's trying to present is the fact that you don't need to put in risk the shareholders wealth, the employees and the environment in order to maximize your profits. in another words, there is not a shortcut to maximize profits. like she says in the beginning: "business is about improving our lives". if an organization can't improve our lives, what is his existence for?
BP is the classical example of a company where profit means everything and sustainability nothing.
ReplyDeleteIf you cut safety cost you are going to regret for sure, maybe not in a month or in a year but eventually (see VW case) it happens.
Surly for some quarters you are going to earn more than your competitors but you are actually decreasing the value of the company in the long-term.
Beside the environmental issue (most important) there is also the issue of the employees who’s safety is in danger. They are not going to work happily not only in the Gulf but also in all the other stations of the world creating future losses for the company.
From the video I cannot say if Margaret Blair is against the logic of profit but I can say that Lynn Stout is against the maximization of the profit in the short-term. As she said in the beginning of the video she loves free market and recognizes the role of it so we cannot define her neither a socialist or anti-capitalism, she only wants a capitalism who looks over the next balance statement.
1.The BP case is the perfectly demonstration of what happens when a business thinks only to maximize his profit in a short-term,taking care of shareholders' interests and not to all stakeholders,without a morality. Satisfying human needs,creating sustainable profit is the primary interest of a business entity and so we can say that BP,destroying the value hasn't satisfied human needs. It goes against the environment and all stakeholders' interests in the Gulf of Mexico. Monotonist view bring to unsatisfaction of people,to a addictional costs and in this case to a big disaster.
ReplyDelete2. I think that Margaret Blair isn't against the logic of profit,since in the primary interest of a business entity we find the need to do profit....but in a sustainable way! BP didn't create profit following the Law. It didn't respect the environement and the social responsabilities. Profit is such a thing that becomes only after the statisfaction of human needs.
1.After watching the video, we can say that the BP crash has been caused by the maximization of the profit in short- term. If the entity isn't sustainable, it can't have a future. They wanted to save money in order to create value for the shareholders, and to increase the profit without thinking to the stakeholders and that's always wrong because it's a danger for the durability of the azienda. As a consequence, it's better to have more costs, but to think always in a long - term in order have an azienda set to continue.
ReplyDelete2. Margaret Blair isn't against the concept of earning money, but an entity can't aim only to increase the profit . She only says that the profit has to be sustainable. This aspect is fundamental because it will have positive effects on the shareholders, the stakeholders, and on the firm itself.
In my opinion this video is the perfect demonstration of what could happen when managers or stakeholders take care only of profit maximization. Especially when the priority is to make money in a short term. As append for BP company: the leaders wanted only to make profit and in this way they cut off the proper safety measures which are indispensable for the survival and growth of the company. The BP’s managers didn’t create sustainable value, they destroyed value in order to save money. All these wrong strategy ended up with additional costs (14 billions) necessary to find a solution for this epic disaster. As Margaret Blair says the only way to guarantee the durability of a company is to invest not only in short term profit but mainly in long term profits, in other words the economic,environmental and social sustainability is fundamental for any business or no-business entity.
ReplyDeleteIn my opinion Margaret Blair strongly believes in the logic of profit because it is determinant for the survival and growth of all the aziende. However she says that profit has to be obtained in the right way and often the maximization of profit needs time: If a company makes only short term investments, as happened for FB, it will never survive, growth, create value in the proper way.
1) This video shows us what could happen if a firm with its shareholders base their business in profit maximization. As Margaret Blair said the main cause of this distaster is the shareholders value thinking because they just didn't want to do long term investiments. They prefered to maximize their profit in a short term. The problem was that BP had to cut customers support, the number of workers and the investiments in research to save money and maximize profit. Those are all the causes of this big disaster that costed a lot of money to the USA ,to the BP but first of all it causes a big enviromental damage. Now they understand for sure that the best way to create profit in a sustainable ways is to satisfy human needs.
ReplyDelete2) I think that Margaret Blair is not against the logic of profit because she said that she strongly believes in business. She is just against the profit maximization because is not a the right way to conduct a business. This logic is against the morality in the market and is against to the creation of profit in a sustainable way.
1) I think that this video reppresents the exasperation of the “shareholders’value thinking”.
ReplyDeleteThe only thing that company wanted to do was the profit creation in the short term, no matter how, it just wanted to increase the shares’value and the dividents for the shareholders. In this way it started to cut off a lot of money for the safety. Moreover, this video shows the bad results of this way of thinking: all the stakeholders (included shareholders) have been penalized and they will be penalized for a long time.
2) I think she is not against the profit but she belives in the sustainable profit for all the stakeholders and in the long term. On the other hand, she is completely against the profit maximization.
1) The video strongly focuses on showing how focusing on maximize the profit in a short-term does not pay of at all. It discusses one of the main topics that we are studying in this course, the differentiation between the shareholders theory (to only maximize shareholders profit) and the primary interest of the azienda that is to satisfy human needs, through the production of goods and services creating sustainable value in order to make profit thus to pay off all of its stakeholders. It’s obvious that it strengthens the second theory showing how in the past 20/30 years business in America has been done the wrong way.
ReplyDelete2) I believe that Margaret Blair was mistaken for Lynn Stout, but anyways I think that she is not against the logic of profit, I think she understood how a business entity cannot only rely on a short-term business idea because this could mean major losses in the future, but it should invest resources in order to have success in a long-term.
For what concern the BP case, this video underlines and shows us what are the effects of carrying out a business in a short term prospective. In my opinion, The BP case can be considered one of the biggest catastrophes ever happened on earth, caused by the indifference and the idiocy of shareholders.
ReplyDeleteTo be honest, I don't think Margaret Blair is against the logic of profit, because she is an economist and she perfectly knows that the profit is the main factor that leads the entrepreneur to achieve his/her business, and to satisfy human needs. Anyways, We should distinguish between making profit in a sustainable or unsustainable way, and so between a long and short term firm. In fact, in my opinion, we can say Margaret Blair is against the logic of profit if we are considering an entity whose only objective is to maximize its profit and that doesn't care about being efficient.
Well, in my opinion the BP case could have been avoided if only the shareholders of the company would not have been so blinded and so attached to the thought of maximizing the profit for them in the short term. So, since this example is even too clear, I think that there is nothing more to say about this shareholder theory that is followed by many organizations all over the world.
ReplyDeleteYes, I think that Margaret Blair is against the logic of profit.
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ReplyDeleteThe BP case demonstrate how could a business situation be risky and unethical when a publicly listed company gives a top priority to short term profits instead of a long and healthy sustainability. The oil's spill disaster occurred in the Gulf of Mexico proves the shareholder value thinking theory which is totally focused on the maximization of profits in a very short time neglecting the health of stakeholders, community, environment, common welfare, citizens and also shareholders due to the additional costs and losses addressed to the organization. BP's board followed the wrong way cutting safety corners in order to save money and trying to take a large advantage to the other competitors (for instance Shell and Chevron). Even if we are discussing about a trading company present in the market I think that this disaster can quietly tag them as useless organization which has made an incalculable damage to environment and in particular to this segment of the wide business world. Supposing an internal shareholders and stakeholders conflict which involved the suite of the company this case can also be used to highlight the importance of coherent short and long term decision making, and how that affect communication during an unexpected crisis. Furthermore the BP issue show us the importance of integrity at the top and the role of governance in reconciling economic and environmental sustainability.
ReplyDeleteMargaret Blair explains his point of view disapproving the logic of profits maximization underscoring the importance of a sustainable value creation in a long term to increase and improve the welfare of our life. That's what a good model of business is used to do in a correct, healthy and ethical domain.
1 I think that the British Petrolium case is the perfect example of a firm that would make higher profit in a short tirm which may effetct badly their long-term operations. Actually the ultimate reason of that disaster was the desire of BP to cut off safety corner in order to save 1 million each day without taking care of a sustanible drilling activity. This not only caused a huge enviromental disaster but also affected negatively all the stakeholder and competitors. BP didn't think that a short-term investement could be more risky than a long-term one and they ran out a non sustanible business based on the share holder 's theory in order to maximize profit.
ReplyDelete2 I think that Margarait Blair is against shareholder's theory and short time investment that can cause damages for all the stakeholders but also for the firm itself. She believes in a business that creates sutanible value.
The video of the BP case clearly explains the how the economic market works. In this case, the BP, ignoring the hypothetical disastrous consequences with the their decisions focused on improving the short term income, came to the dramatic event of the April 2010. The point is that first of all the reasons why the shareholders decided to aim for the short term were strongly overcame by the enormous damage they caused: economical and social. So their economical loss was certainly superior of what they saved over few years, and they also destroyed the economy of the Gulf where it happens creating serious problems to other oil-refineries all over the world. Proving that one economic entity can incentivize the economic sector where it works as same as destroy it with wrong decisions. These decisions affect strongly also all the other stakeholders which in this case suffered tremendously of this event.
ReplyDeleteMargaret Blair is clearly not against the logic of profit. As an economist what he want to explain is the importance of the decisions an Azienda takes which in a first moment could result extremely positive without taking into account the posthumous consequences. She supports the stakeholders theory.
1) The BP case video makes me ponder. It is emblematic of what could happen when unethical entrepreneurs run important business. If shareholders only think about the profit maximization reducing security measures, in short-term, it will damage the other stakeholders (the environment 'in primis') and it will bring extra costs and fines to the company in the long-term.
ReplyDelete2) I don’t think Margaret Blair is against the logic of profit, but she is against the logic of THIS KIND of profit. Running businesses through an incorrect ethical conduct is meaningless and could cause lots of damages (economically and environmentally) to the firm's stakeholders if extended in a long-term period
1) The BP case is one of the possible extreme consequences of the so-called shareholder theory. The firm, in order to maximize the short-term profit, did not take care of the safety measures. This led to a disaster that firstly damaged the environment, then destroyed also the shares of the company. Every stakholder of the firm has been damaged by this behaviour.
ReplyDelete2) I think that Margaret Blair promotes a fair market regulated by right laws. She is not against the profit for itself, but I suppose she is against the unfair profit.
1) I think that is really difficult imagine that some people just to have more power and richnesses are destroying the world.I hope that the BP don't imagined that consequences, when they cut the safety corner, because nobody may do something like that conscious of the risks.
ReplyDelete2) Margaret Blair is probably on favor of the profit, on condition that it is sustainable.
1) I think that is really difficult imagine that some people just to have more power and richnesses are destroying the world.I hope that the BP don't imagined that consequences, when they cut the safety corner, because nobody may do something like that conscious of the risks.
ReplyDelete2) Margaret Blair is probably on favor of the profit, on condition that it is sustainable.
1) I think that is really difficult imagine that some people just to have more power and richnesses are destroying the world.I hope that the BP don't imagined that consequences, when they cut the safety corner, because nobody may do something like that conscious of the risks.
ReplyDelete2) Margaret Blair is probably on favor of the profit, on condition that it is sustainable.
In my opinion the bp case is the perfect example of how the shareholders ' theory is a failure. The sustainable profit is not only a choose but is a condition of existence for the firm as well. The maximisation of the profit and shares'value in the short term is a roinus theory.
ReplyDeleteMargaret Blair is on favour of the sustainable profit, taking care about the environment and respecting society and law. She believes in the long term value's increment.
1) This video sums up how poor decisions can cause disasters. BP case is one of the most famous ones, but there are a lot of business entities that have operated the same way: they have created value only for shareholders. In the business world, there should not exist shortcuts that effect negatively on the well-being of the other stakeholders.
ReplyDelete2) Margaret Blair is not against the logic of profit, because without profit we wouldn't have business entities and without business entities we wouldn't have the fulfillment of our wants and needs. Instead, she is suggesting that business entities should not focus their vision on the short-term but on the long-term.
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ReplyDeleteWhat about the video? It perfectly highlights one of the consequences to put the maximization of profit as objective of a firm.
ReplyDeleteBP in carrying out its business activity do not take care of the sustainability of the value creation, nay the firm considered only creating value for the shareholders. This approach caused , on the april of 2010, an environmental disaster, risk you run if the company thinks only of profit maximization in a short-term. So this video underlines why it is more appreciable the approach that we study during foundamentals of business course: the objective of the firm is satisfy human needs creating sustainable profit for azienda itself and for all the stakeholders, in a short and long-term, following this way the firm is able to achieve the durability.
In my opinion Margaret Blair isn't against the logic of profit, but she supports the maximization of profit as not the primary interest of the azienda. Moreover we have to distinguish the logic of the profit in a long and in a short term, according to Margaret blair the profit can be achieved in a sustainable way and in the long-term.
1)After watching the videos , i can realize what the BP case.There is no doubt that the PC damage many social problem and the environment sustainable development in order to achieve it's maximize profit .Although it can come true the objective profit in short-time,it is more than 1 billion taken from the long -term.
ReplyDelete2)Her claim in the lecture is correct. She explained the BP case comprehensively and detailedly introduced the long or short-term damage when the firm happened the accident .She definitely pointed that the company should realize the importance of a long-term development to maintain the company's well-balanced operation
1. The video analyzes the question about the duties of corporation thanks to Margaret Blair's explanation on what business and public corporation really are. She gives us the example of BP disaster in the Gulf of Mexico: it was the worst oil spill in the history and caused long-term negative consequences on the environment, on the citizens and on the BP shareholders itself. Margaret Blair points out that oil spill was the result of the so-called "shareholders value thinking": in fact BP has decided to cut safety corners in order to save money for shareholders wealth but at the end this policy leads them to sacrifice 100 billion dollars and to lose its reputation.
ReplyDelete2. Margaret Blair starts by saying that business contributes to social welfare but only when it is structured properly. This means that business companies that want to maximize profit in the short term reducing workplace safety and not taking care about their employees are going to lead to failure.
1- The British Petroleum case seems to be one of many financial and economical disasters made by corporations in order to maximize their short term profit. They acted illegally cutting safety operations in order to save 1 million dollars per day, and they ended up losing 100 billion dollars and creating a disaster for the ecosystem of the Gulf. Bad management and bad shareholders, that's what led the company to this disaster.
ReplyDelete2- Margaret Blair is not against the logic of profit. She's against the shareholder theory, but she's pro-business and thinks long term stability is more important than the short term profit. She looks to me almost as an economista d'azienda.
1) BP case shows how a business can fail if it does not respect all stakeholders. They did a great mistake by minding only about the short term profit, cutting costs on safety operations just to save an hypothetical profit. Unfortunately many firms nowadays have this shareholders view.
ReplyDelete2) She is not against the logic of profit as she says at the beginning of the video. She is against short term business strategies aimed only to a maximization of profit. Instead, she thinks business is the root for building an efficient society and so she cannot be against the logic of profit.
1. In my opinion the BP case is an emblematic example of what happens if a firm supports the shareholder theory, so is therefore focused on maximizing the profit for the shareholder in a short-term. By disregarding the other stakeholders and not considering their wealth the corporations went through an inconvenient disaster, the oil spill. This tragedy had had long-term negative effects on all the people interested in the firm or in the gulf and also on BP's profit.
ReplyDelete2. No, margaret Blair is not against the logic of profit, on the contrary she sustains an “intelligent” profit, considering all the stakeholders and focusing on the long-term.
1) in my opinion this video well represents one of the most important problem of business, when a firm wants to maximize profit saving money from something that will cause its decline. This was what happened to BP, the firm cut off safety corners saving 1 million dollars per day, but due to this choice they generated this disaster that produced 100 billlions dollars of losses. In this way the firm damaged itself and its stakeholders too, like the people living around the Gulf of Mexico.
ReplyDelete2) Margaret Blair definitely is not against the logic of profit. She thinks to profit with a positive view, but what she wanted to underline was that profit is a positive entity if it is run in law; she pointed out that sometimes is not possible to maximize profit in the short term.
1. The BP case is a clear demonstration of what happens when the firm's objective is to maximize the profit for the shareholders in a short term, putting at risk the environment and as a consequence causing a natural disaster in the Gulf.
ReplyDelete2. Margaret Blair isn't against the logic of profit, she believes business enteties are the basis of social welfare and efficient society. So she believes in a long term profit in a sustainable way.
1) I personally think that the video is very interesting and truthful. It describes in a perfect way how companies tend to behave recently. Cutting security's costs just to maximize your profit in a short term, is not just ethically wrong but it puts in danger the stability and durability of the firm, The BP disaster in the gulf of mexico is only the result of an immoral management.
ReplyDelete2) Margaret Blair is undoubtedly not against the logic of profit, she's against the shareholder theory that damages many companies and their sustainability.
1) The BP case is a classic exemple of a firm where they want to maximize profit in a short term without thinking of the consequences that there will be in the long term.In the video we can understand that they cut safety corners in order to save 1 million each day but in the end they will have a loss for a hundred billion dollars. Furthermore it is also an example of a firm that doesn't respect the environment destroying a lot of other interests (i.e. fishing...).
ReplyDelete2) I think that Margaret Blair isn't against the logic of profit, she knows that profit is very important for a firm. She says that profit must consider all the other interests, as sustainability, and don't have to be the more important thing, especially in the short term.
1) The BP case is a classic exemple of a firm where they want to maximize profit in a short term without thinking of the consequences that there will be in the long term.In the video we can understand that they cut safety corners in order to save 1 million each day but in the end they will have a loss for a hundred billion dollars. Furthermore it is also an example of a firm that doesn't respect the environment destroying a lot of other interests (i.e. fishing...).
ReplyDelete2) I think that Margaret Blair isn't against the logic of profit, she knows that profit is very important for a firm. She says that profit must consider all the other interests, as sustainability, and don't have to be the more important thing, especially in the short term.
1) BP case is an appropriate example of the sustainability’s importance in the modality through which a firm creates value. The monotonist view about a corporation’s duties tends to put first the shareholder profit maximization and the short-term profits strategy, with the risk of not taking into account stakeholders: and since they represent the environment with which an azienda constantly interacts, they can be affected by its way of acting and in turn affect negatively or positively its survival. According to this consideration, it’s easy to understand why the BP’s strategy has led to an inevitable failure: the corporation decided to put off the proper safety measures in order to save 1 million dollars and increase value share in the short term, and in the end it lost 100 billion dollars and damaged both stakeholders and shareholders, because it didn’t consider at all the effects that such a choise would have produced on the environment and consequently on the long term health of the azienda itself.
ReplyDelete2) I don’t think Margaret Blair is totally against the logic of profit, but rather that she doesn’t accept the maximization of profit at any cost and the idea of a value created without sustainability. Of course money are needed to the survival and growth of an economic entity, but they cannot be the “what” it pursues, because, as the video explains, this kind of strategy leads to the failure of the azienda itself and consequently goes against the interest of making profit.
1) I think this video really help us to understand why a business entity should have an ethical moral. We observed in the BP case, how everything is linked as in a chain. The BP chose to maximize shareholders' profit in a wrong way, before thinking to the consequences of this choice. Thus, that choice became a problem for all the stakeholders, but firstly for shareholders who lost a lot of money and people trust.
ReplyDelete2) According to me, Margaret Blair is not against the logic of profit. She admires the firms who operate in the market creating sustainable value, because they are indispensable for our well-being. She's against the shareholders' value thinking and those who want to earn profit in a short time.
1) This video clarifies the fact that if one only think about maximizing the profit, no matter how long and how, the risk of getting broke is high. and it is obvious in this video that stakeholder theory is better than shareholder theory and runs less risk of losing.
ReplyDelete2) Of course not. not only she's not against the logic of profit, but also she describes profit in a logical and wise way. that sometimes , in order to get sustainable and assured profit in long term periods, you must not try to cut the expenses and costs of safety of your firm. So, if you take care about the safety and try not just to create profit fast, it would guarantee the survival of your firm.
1) The BP case is undoubtedly the proof that some corporations do not act ethically and so they separate the ethics from the business ,which should linked and used togheter. " The BP example is given to understand how the mistakes over the past 20-30 years have impeded the ability of business to make our lives better". This fact evidences how people think about their own interests and shareholder interests ,neglecting the external environment , in order to save money and as in this case , cutting safety corners which could have prevented this massive disaster. From my perspective if we want to conduct a safety and sustainable business for the azienda itself and for the environment, we must not be SELFISH and spend the adequate money on the right things, doing so the right thing to do.
ReplyDelete2) Margaret Blair is not against the logic of profit , she belives "the business is about improving our lives" ,of course just if it is conducted in the right way .As in the BP case she is against the shareholders value thinking ,that unfortunately posses the business world today.
1)So big disatster happened just because BP wanted to cut safety corners to save money! Its really horrible,but unfortunatelly many companies nowadays put on the 1st place their profit and they are absolutely unethical. As the result BP lost 100 billions dollars in shareholders wealth and destroyed ecology of that region for many years.
ReplyDelete2)I think, that Margaret Blair isn't against the logic of profit, but she is absolutely correct, that companies shoudn't put it on the 1st place.
1.From the video we see what happens to company that only take care to the profit for the short term, and like in the B.P company they saved money on capital and in the end polluted the environment. From this company wrong decision we learn that we always need to think about the long term and the environment of our company.
ReplyDelete2. I don't think that Margaret Blair is against profit, she just want to show that we have to consider our environment because is most important thing for us. You can earn profit as long as you don't damage the environment .
In my opinion the BP's case is the worst example of a strategy to conduct a business. They've been harmful for themselves, for the environment and for the whole society. They thought only to maximize the profit in a short-term, not caring about security of their employees and all the other stakeholders, and so they have provoked long-term damages for the shareholders and stakeholders.
ReplyDeleteI think that Margaret Blair is against the logic of profit if we intend it as the maximization of profit in a short-term, without caring about consequences.
In my opinion the BP's case is the worst example of a strategy to conduct a business. They've been harmful for themselves, for the environment and for the whole society. They thought only to maximize the profit in a short-term, not caring about security of their employees and all the other stakeholders, and so they have provoked long-term damages for the shareholders and stakeholders.
ReplyDeleteI think that Margaret Blair is against the logic of profit if we intend it as the maximization of profit in a short-term, without caring about consequences.
1)In my opinion the BP case follows the logics of extreme capitalism and short-term capitalization, it's a perfect example of what can happen if you are only concerned about the present without thinking of the future and of all the possibilities that can come true. The company was so stuck to the profit that completely didn't mind of the secondary stakeholders, like the environment. This case should be studied to allow future managers to don't follow those caitiffs steps.
ReplyDelete2) Is Margaret Blair herself in the video to answer this quest, in fact she says that many people think she is communist while she isn't; more properly she is a business woman who tends to "create a sustainable value" in order with moral principles of which everyone should be endowed and with the law. For her the profit is important but it depends on the way it's achieved, in fact profit must be achieved not necessarily in a short-term but also and even more appropriate in a long-term, allowing the business to grow up in a sustainable way.
1.In the video is shown how focusing on the maximization of profit in short-term, could cause a disaster. The BP case is a result of the shareholder theory, the firm did not focus on the long term effects and on a sustainable profit, but just on short-term profit so it causes a damage for all the stakeholders.
ReplyDelete2.I think that Margaret Blair isn’t against the logic of profit but she’s against the unsustainable profit, she believes that a firm should not just care about the maximization of profit in short-term and it should take care of all stakeholders and not just of shareholders.
After watching the video on the BP case, I strengthen my opinion on the sustainability of the profit. On one hand, it is true that shareholders are the first to bear losses, therefore they are the first motivated in conducting the business with Economicità, even because their remunerations are not protected by contracts, as for the other stakeholders (see debt holder). On the other hand it has to be said that sometimes profit, improperly influences our overview and our “economic skills”. A short- term profit maximisation, is almost always in conflict with the concept of sustainable profit. The example of BP provided is perfect: they tried to increase the profit in the short term day by day, but the final loss showed how this was a complete failure: the condition of value creation was missed. A failure for the Azienda, as shares went down. A failure for the environment (remember that “what goes around comes around”). A failure for the entire US economy. A disaster for tourism and activities like fishing. This was totally against the first level of Carroll’s pyramid: be profitable for the entire lifetime of the Azienda. Moreover, as said in the video: people put their money and trust, in sustainable companies.
ReplyDeleteMargaret Blair is not against the profit, as she said in the first part of the video. She probably agrees that the profit is both the condition to be met in order to satisfy human needs, and the main extrinsic motivation for the entrepreneur. But the azienda, as a common good, has to achieve its primary interest, and as a systemic coordination of parts and participants, all of them must aim to the same objective: the satisfaction of certain needs (the WHY), and the achievement of the condition for survival and growth. And the only way to pursue this, is to work on a sustainable profit, linking the economy with society and environment.
1) In my opinion the BP case is the best way to explain what real business is. In fact as we know we don’t have just to make profit, that is not enough, we have to make SUSTAINABLE profit in a LONG TERM and that is exactly what BP company didn’t do.
ReplyDeleteThe BP company decided to cut safety corners just to make profit in a short term (day by day) and what was the result? The oil well exploded.
BP company cut the safety corners not analyzing what consequences there would have been.
From this we can learn that, when we cut something we have to think about the consequences. Now the gulf of Mexico is polluted and all the activities around there cannot survive because, for example, none want to buy fish, none want to swim there, none want to go there during their holidays etc etc. .
The BP company not only destroyed itself by having to pay the huge compensation, but it also destroyed the other activities around there.
2)I don’t think that Margaret Blair is against the logic of profit in general. I think she is against the logic of profit of the companies, as BP company, that want to make a not-sustainable profit in an egoistic way, not thinking about the negative consequences.
I think that Margaret Blair is of the idea that to make profit you have to do it in a long term sustainable way
1)this would be unprofessional to decrease the quality or the quantity of the input to gain more profit , but this would be unprofessional and also senseless if this is about safety and security . in this case , their fault caused not only failure for the company but also had negative effects on the environment and other people .
ReplyDelete2)i think that Margaret Blair is against this idea that we could increase our profit without being worry about its consequences and risks in long term .
1)this would be unprofessional to decrease the quality or the quantity of the input to gain more profit , but this would be unprofessional and also senseless if this is about safety and security . in this case , their fault caused not only failure for the company but also had negative effects on the environment and other people .
ReplyDelete2)i think that Margaret Blair is against this idea that we could increase our profit without being worry about its consequences and risks in long term .
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ReplyDelete
ReplyDelete1) The BP case perfectly shows how dangerous could it be to put the profit maximization as the objective of the company. The BP company cut off safety corners in order to save one million dollars a day, but it ended up sacrificing a hundred billion dollars. In this situation the BP's manager was driven by what Margaret Blairs calls the “shareholder value thinking”, in order to create a high value for shareholders in very short-terms the company damaged all the other stakeholders and the shareholders' long-term interests.
2) I think that Margaret Blair is deeply against the share holder theory and she wants to point out the “dreadful mistake” of the past twenty-three years which consists in focus on the maximization of profit misunderstanding what business really is. Moreover companies, giving an exaggerated attention to the short-term share price, fail to take adequate care of their stakeholders and this can lead to serious loss also for the shareholders.
1) The accident caused by BP can be certainly called a tragedy. 11 people died, thousands were damaged in too many ways and we can't tell how many animals died as well. Margaret Blair said that the cause of it was BP's choice to save 1 million dollar a day by saving on safety accessories needed in order to drill safely. I'm sure 1 million dollar a day is a big amount of money even for a company as big as BP, but they made the worst choice of this world by risking what in the end actually happened, and they ended losing an insane amount of money, but more importantly they ruined the lives of hundreds of people, and this is a risk that shouldn't be taken no matter what amount of money is on the table.
ReplyDelete2) I personally think that Margaret Blair is only partially against the logic of profit because she said that profit is important and above all businesses' survival is important, but she is 100% against the profit as the objective of the firm. She embraces the "stakeholder theory" over the "shareolder theory" and says that a firm should be responsible for its own action and should never let profit put in danger other stakeholders.
1) The BP's oil disaster is for sure one of the finest example that we can find to define what an organization could do if it thinks and act in short terms. As explained in the video, the choice of reducing founds for safety corners in order to save money has been the worst idea that the company could ever had. Doing this they focused on the short terms profit saving 1 million of dollars per day but then, when accident happened, they end up on sacrificing more than a hundred billions dollars in shareholders wealth alone. The net loss here is clear as the loss of popularity. This makes us understand that when you have an azienda, either if it sells goods or services, there is a lot of factors that you have to take care about and that come before the instant profit.
ReplyDelete2) No I don't. I think that she repudiates the short terms profit. She knows what real profit is and so in the video she explains where some wrong choices as a company could bring you, underlining all the damages that you can create to a lot of different aspects (the company's image, the shareholder, the stakeholders and so on) which you have to respect as a manager, as a owner and as a person who works in the business.
1) Like said in the video, businesses can only improve our lives if they are structured properly.A business like BP that thinks only about short term profit maximization is not properly structure. By cutting corners, 11 people were killed and the Gulf may never be the same. BP is a perfect example about what the idea of profit maximization can do to a company, through their methods the company lost 100 billion dollars to save millions. It is a perfect example of not to do business.
ReplyDelete2) She is definitely not against the logic of profit, i believe she is however against the idea of profit maximization through any means necessary and short term profit maximization. One could therefore argue she is against the shareholder theory. She is a believer in profit but only if it is achieved with ethics.
This video makes us realize how much the business logic of the last 20 - 30 years drove us to think only about profit no matter in which way, if sustainable or not. The tragedy occurred with the BP case hugely harmed an unthinkable amount of people, places, workers, employees, aziende and last but not least the environment itself which is what should be respected at any cost since it is a gift of nature that we cannot posses, the land we use for our activity will only and always be a rent and for this reason we must respect it. I understand a million a day it' s a pretty consistent amount of money for any azienda in the world but the lives lost and the damages caused are not worth any prize.
ReplyDeleteMargaret Blair is definitely not against the logic of profit, she looks for profit but in a reasoned way, which means that if a determined business decision leads to a bigger profit today causing future losses and damaging the future azienda's stability it must not be taken.
1-This video is the perfect demonstration that if the profit maximization is the main objective of the firm whitout taking care of the environment, the firm could have a good short term profit but in the long term it may have many problems.
ReplyDelete2-In my opinion Margaret Blair is not against the logic of profit. She is for a profit in a sustainable way and in a long term. She puts the environment and the azienda in the first place before the profit maximization
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ReplyDeleteWhat I got in vedio is that" we should not only concentrate on profit maximization.Environment is also improtant.If you don't concentrate on environment you might run your business for short time but you can't survive for long term".
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NO she is not against logic of profit.She only prefers envionment and long term business over profit maximization.
1) For what concern the BP case, this video best represents the huge problem that exist in big corporations: maximize the profit in a short term. Margaret Blair underlined that this is the realistic way of thinking of shareholders: to maximize profit if possible also for tomorrow and not in 5 or 10 years. The BP company was saving 1 million dollars a day loosing after the disaster more than 100 billion dollars destroying the share’s value. No company in this world can think to maximize profit in a very short term, let things take their course !!
ReplyDelete2) In my opinion Margaret Blair is not against the logic of profit, instead she sad “business is improving our lives”, she as an economist knows perfectly that everyone on earth will run a business to get profit from it. But what she said is “market can not exist without law and business can not exist without law”, so everything must be done following the law, creating sustainable value not acting as BP company did.
BP case properly is a huge mistake made by its firm. Wrong discussions not looking at the consideration of other stakeholders but a selfish interest . Though I could say it's a huge lesson to other organizations and will make them to reason very, well putting in to consideration the negative aspects of it.The primary interest of an Azienda is be to satisfy the customers and create sustainable value but BP lost its value,deprecated ,harmed ,killed 11workers, took a bad record in the world, loss 100 billion ,75 percentage of living creature in the ocean died, leaving the fishery industry, customers , employees and other co operations in a loss.All in the save money each day 1 million each day well they eventually loosed more .it was just a very bad idea to have acted on this discussion cos alot at loss not just them but others.
ReplyDelete2)I don't think so , I believe she is trying to pass a massage along i.e if a business should be established it should take into consideration the value of others such as employees,stakeholders, customers,environment,e.t.c and should be structured carefully. If the BP organization have had a careful consideration there wouldn't have been any need for this great loss to have occurred. Trying to save a million dollars. And I think she did a great job because any future manager sitting there who have learnt from what she said.
Andrea Murri
ReplyDelete1_ It is certainly clear that the BP case brought to our attention it is an example of business failure, both from the economic and ethical point of view. The disaster occurred it is only the ultimate cause and effect of reckless actions took by the BP managers in order to speculate and make the highest profits. Underneath the real problem that came up is the maximization profit logic that most of the biggest oil multinationals use to get their profit up in the short term, without considering the enough amount of time required in order to produce a positive net present value.
2_ I think Margaret Blair is not against the logic of profit as she talks about how business can contribute to make a successful society, although she drives our attention on how the free market can be shaped and she tries to give a warning that market without law cannot exists in the interest of society to prevent the market become a place where the strongest man takes what he wants.
1- British petroleum is one of many cases where a firm demostrates to take care only on profit maximization in short-term, causing a lot of risks; so it shows how it is unethical.
ReplyDelete2-Margaret Blair says that is not against the logic of profit,because it's one of many important factors for the entities for the growth and survival; but she says that a firm has to follow the logic of profit in a sustainable way in economical, social and environmental sectors, for profit or not profit entities.
8) 1) The BP case is environmentally irresponsible. It could determines the extinction of rare breeds, but, above all else, it's economical and ethically incorrect.
ReplyDeleteThey basically sacrified the environmental for cutting safety costs. This is what could happens if somebody/something try to follow the logic of short term profit maximization ( cheating )
rather than long term business.
2) She's not against the logic of profit, she's just against the logic of short term maximization.
8) 1) The BP case is environmentally irresponsible. It could determines the extinction of rare breeds, but, above all else, it's economical and ethically incorrect.
ReplyDeleteThey basically sacrified the environmental for cutting safety costs. This is what could happens if somebody/something try to follow the logic of short term profit maximization ( cheating )
rather than long term business.
2) She's not against the logic of profit, she's just against the logic of short term maximization.
1) The BP case definetely depicts and underlines the weaknesses of having the maximization of profit as objective of the firm. Clearly, British petroleum company, was not considering that ,by saving money in a short term of time, therefore creating profit for shareholders right away, they undermined the durability not only of the shareholders profit, but also of the entire firm itself. The video highlights the importance of onsidering stakeholders that commonly do not have a voice in decisions, such as the environment.
ReplyDelete2) Margaret Blair is definetely not against the logic of profit, but she realizes that the logic of profit cannot be the goal of a firm.
1) BP case was the oil spill disaster in the Gulf of Mexico. In my opinion , this video give us main concept of business that one wrong decision makes huge damage our environments and society and entrepreneurs may face huge loss
ReplyDelete2) No , I think Margaret Blair is not against the logic of profit. she stressed controlling the ecological disaster rather than making profit at the sake of environment. She also stressed the necessity of business in the process of building better society but it should be within the legal framework of the government and environment.
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ReplyDelete1) The video explains briefly how the BP oil spill disaster has had negative outcomes on many (if not all) stakeholders, and in first place the firm itself: as a matter of fact, it has been said that this disaster was caused by the negligence on BP's part by cutting off what they considered being "excessive costs" (especially employee safety in this case) in order to maximize the profit of the shareholders in less time possible (monotonist view), according also to the shareholder theory
ReplyDelete2) Margaret Blair is not against the logic of profit, as she explains in the beginning of the video, she is just against the logic that BP took into account, that is maximizing shareholder value in a short term, that eventually ended in a huge loss for the shareholders themselves (but not only)
1)The BP case is a clearly example of how some organizations don't act efficiently and effectively. In fact running a business in an incorrect way can cause lots of problems as in this case that it brought to a dramatic event,since they thought to maximize the profit in a short term ,not caring about the external environment and the consequences that it could have brought in the future.
ReplyDelete2) I think that Margaret Blair isn't against the logic of profit,but she thinks that profit should not be seen as the most important thing for the firm especially in the short term. So,she supports the maximization of the profit as not the primary interest of the azienda.
1) The British Petroleum operated in a dreadful way, without taking into consideration its social responsibilities. As Margaret Blair pointed out, the company followed exclusively the logic of profit: saving and retaining money without ensuring safety of their operations to avoid potential damages to the external environment and the community that are fundamental stakeholders to the company.
ReplyDelete2) Margaret Blair does not go against the logic of profit, instead she affirms that profit is an important element for the continuity and growth of a company. But the latter must not retain profit considering it on a higher level that that of the stakeholders, since, as she stated, successful businesses have as their primary interest the creation of value for the stakeholders (whose interests in the firm's business is essential) and the "improvement of our lives".
1) BP was being environmentally irresponsible as they created pollution trying to cut costs by ignoring safety concerns while ignoring the interest of one of their main stakeholders (Environment and the community), harming the industries that had a relationship with the gulf. The effects can even be seen now after 2 years, even though BP spent 14 billion dollars, they still failed to prevent the negative externalities. This oil spill could have been prevented if BP spent a million dollar per day for safety concerns.
ReplyDelete2) Margaret Blair argues that firms priories Shareholder value thinking, she argues that firms should think of the long term value creation for the society and take interest of all stakeholders into consideration. She says that most large firms fail to make long term investments, and ignore the interest of most stakeholders, much of the lost is carried by the costumers and employers and not by the shareholders.
1) The BP case is probably the most damaging oil spill in history, it left people who live near the Gulf and also people who has only the Gulf in order to live, a very bad condition(environment).The cause of this catastrophe is the desire of the owner/s to maximize profit which is in my opinion not a crime, but the fact that the business put first the personal desire rather than the concern of the community is an awful decision.
ReplyDelete2) I don't think Margaret Blair is against the logic of profit rather than she wanted only to remind entrepreneurs to take all the considerations regarding the business for example employees and environment on making decisions.
1)This video explains how an entity should NOT operate. The British Petroleum in 2010 took a decision which only sight to the profit maximisation . This wrong decision caused the pollution of the Gulf which became a really catastrophe.
ReplyDelete2) According to me Margaret Blair is against the logic of profit because this kind of thought bring only to takewrong decisions which will demage environment ,customers and also the entity itself
1. BP has demonstrated to be one of those companies that are only concerned with profit, rather than the satisfaction of the stakeholders. What happened was given by their focusing on a shot term profit, ignoring safety, so that they could have saved money, even though they were putting at risk an entire ecosystem, that is the one of the gulf of Mexico. It is sad to see that there are companies that care more about profit than stakeholders, since all the stakeholders in the gulf of Mexico ended up being damaged by this disaster.
ReplyDelete2. To my mind, we cannot say that she is against the logic of profit, I would rather affirm that she supports the idea of "sustainable profit", electing safety and stakeholders' satisfaction as the main basis which profit has to be built.
1. BP has demonstrated to be one of those companies that are only concerned with profit, rather than the satisfaction of the stakeholders. What happened was given by their focusing on a shot term profit, ignoring safety, so that they could have saved money, even though they were putting at risk an entire ecosystem, that is the one of the gulf of Mexico. It is sad to see that there are companies that care more about profit than stakeholders, since all the stakeholders in the gulf of Mexico ended up being damaged by this disaster.
ReplyDelete2. To my mind, we cannot say that she is against the logic of profit, I would rather affirm that she supports the idea of "sustainable profit", electing safety and stakeholders' satisfaction as the main basis which profit has to be built.
1-The video underlines what are the consequences of carrying out a business in a short term prospective thinking only about the profit maximalization. In fact, the shareholders in order to save 1 million dollars per day cut safety precautions and then they had to sacrifice 100 billion dollars in order to recover the disaster. Not to mention the fact that though, the harm to the environment are now irrecoverable.The Gulf of Mexico habitat is destroyed and no money will ever heal it.
ReplyDelete2- Margaret Blair is not against the profit. She exactly knows that profit is the driving force that motivates all business entities, but she is against the logic of maximalization in a short term. She thinks that free market is an oximour, a free market is the place where the strongers prevail over the others and take their personal interests.
1-The video underlines what are the consequences of carrying out a business in a short term prospective thinking only about the profit maximalization. In fact, the shareholders in order to save 1 million dollars per day cut safety precautions and then they had to sacrifice 100 billion dollars in order to recover the disaster. Not to mention the fact that though, the harm to the environment are now irrecoverable.The Gulf of Mexico habitat is destroyed and no money will ever heal it.
ReplyDelete2- Margaret Blair is not against the profit. She exactly knows that profit is the driving force that motivates all business entities, but she is against the logic of maximalization in a short term. She thinks that free market is an oximour, a free market is the place where the strongers prevail over the others and take their personal interests.
1) My opinion is that we live in a world that constantly demands things now, rather than later. This societal problem seeps into business, as its influence becomes entwined with business, as this makes a business be short term profit oriented (as described by Margaret Blair in her hypothesis: shareholder value thinking) this is also an example of conflict of interest that takes place when the desisionmaker puts the company's sustainability on the line by cutting corners to have shareholder value growth. Ecological systems ruined, the marine biome changed forever, and I for one, understand that to be the biggest loss. Forget the money, think of the seven species which are driven to extinction by the oil spill like the North Atlantic blue fin tuna, sea turtles, sharks (and the patterns they follow, subsequently pushing them to other marine biomes, increasing the predator number and decreasing another by the fact that there are more predators) dolphins, brown pelicans. Then think of the Gulf stakeholders, etc. This is economically, biologically and socioeconomically the worst human disaster ever recorded.
ReplyDelete2)Margaret is not against the logic of profit, but is against unsustainable short term profit that puts a company's survival on the line.
1. My opinion this BP case is one real life business mistake that not only damaged environment and had catastrophic effects on the nature, but also cost the company millions of dollars. I have read many case studies and articles about businesses which make this major mistake: for the short-term benefits they don't take in consideration side effects and risks of certain things. On the example of BP we can say that its share holders refused to spend extra money for the security and ended up giving billions after the explosion, further more with bad reputation among the customers and killing some of the workers. In my opinion BP case should be example for other businesses who try to minimize the costs on behalf of the security.
ReplyDelete2. I do not think that Margaret Blair is against topic of profit, she states that businesses should earn profit. However they should consider long term effects as well as short term.
1) My opinion on the video Who’s Minding the Store is that I agree with Margaret Blair because companies cannot cut safety corners of operations, because cutting this safety corners might end up in big loses, affecting stakeholders, and loosing relationships with stakeholders. One must think in favour of all the stakeholders.
ReplyDelete2) I don’t think Margaret Blair is against the logic of profit what has happened says it all, this company was not having ethical and humanitarian principles.
1. British Petroleum Case is a clear example of a business which is based on the shareholders' theory. The disaster happened because BP did not care about stakeholders, but it cared about shareholders and maximization of the profit in a short-term. As we know, this disaster did not only demage the entire activities of the Gulf of Mexico, but it affected also BP's shareholders who had to pay billions of dollars to clean up the environment. Nowadays the Gulf of Mexico is still affected by this disaster which happened in 2010.
ReplyDelete2. I do not think that Margaret Blair is against the logic of profit, because without profit is difficult to establish a durable business, but I think she is against the shareholders' theory, because it is impossible to start up a successful business if you do not create a sustainable value in a long-term.
1)This video explains how an entity could damage the environment. The British Petroleum in 2010 took a decision in order to make a profit maximisation and this give us a clearly sight of the Shareholder's theory. This decision had been the caused the pollution of the sea which became a really catastrophic thing.
ReplyDelete2) I don't think that Margaret Blair is against the logic of making profit, but i think that she just wants that every Owner or manager takes care of every consequences of their decision.
1)The case of BP is a prime example of what can happen to a company if the first and only interest of its shareholders is to maximize short-term profit , without taking into consideration the interest of stakeholders and consumers in general .
ReplyDeleteUnless we focus on the development of the company and on its preservation , disasters like the one of the Gulf of Mexico could happen.
2)In my opinion Margaret Blair is not against the logic of profit, but she wants tho emphasize that in the attempt to maximize profit , shareholders must act in a sustainable way, without affecting negatively the company
1.) The BP case is a perfect example of what happens when a company aim to do short-term investments, thinking only about the profit-maximization cutting safety operations so without fulfilling all stakeholders expectations.
ReplyDelete2.) Margaret Blair is not against the logic of profit, she just points up that an organization has to act in a sustainable way, thinking in "a long-term vision" terms achieving stakeholder's expectations. "customers do not like firms that act inconsistently with their own social desires". In conclusion, a profit earned with short-term investments can be faster, but the value created risks to be less consistent and durable instead of a value created in a sustainable way over the long-term.
The environmental disaster of the oil rig Deepwater Horizon , affiliated to British Petroleum , was one massive oil spill in the Gulf of Mexico following an accident involving the Macondo Well , located more than 1,500 meters deep .
ReplyDeleteThe spill began April 20, 2010 and ended 106 days later , on Aug. 4, 2010 , with millions of barrels of oil still floating on the waters in front of Louisiana , Mississippi , Alabama and Florida , as well as the heavier fraction of oil that formed clusters mileage on the seabed . the BP is a company inli concentrated in the short term investment and don't think to the sustainability of it actions.
Margaret blair has put the spotlights to the sustainability of the profit for the survival and growth of organization.
1 BP case is a clear evidence of how bad actions and conduct can only lead to worst situations. thinking only to maximize shareholders profit in the short-term without thinking to the stakeholders, brought the company not only to pollute the environment in such a critical way, but also to a $100 million debt.
ReplyDelete2 Margaret Blair is not against the logic of profit, as long as the company respects its primary interest, conducting a sustainable behavior, thinking to the long-term survival
1. The BP case is the perfect example of what an azienda should not be: as we studied, the primary interest of an azienda is to satisfy human needs, creating sustainable profit. The BP, instead, focused itsself only on the shareholers' interests maximising profit in short time, cutting safety corners. In order to do that, the BP didn't think about a good strategy to reach its goals because destroyed everything: environment, the ecosystem; it jeopardized its workers' life causing 11 dead; it caused additional costs; it was a bad for the fishing activity, fot thee tourism etc.
ReplyDelete2. I don't think that Margaret Blair is against the logic of profit beacuse, as she said in the video, she adores business and doesn't believe that successful societies can exist without a thriving business sector and I agree with her. What she is saying in the video is that a business entity must be runned respecting the law and with a long term persepctive and must be focused not only on the interest of the shareholders, the stakeholders and of the firm itself.
1)The BP is the example of how a business should not be run: pursuing the profit maximization in the short term and do not acting in the interest of all the stakeholders (in particular the enviroment which is one of the primary) could indeed be dangerous for the company itself. In fact, the BP cut off the safety corners, in order to save 1 million dollars per day, but this brought to a loss of 100 billion dollars and an enviromental disaster for the Gulf, but also negative effects for all the people and companies acting in the Gulf.
ReplyDelete2)I don’t think that Margaret Blair is against the logic of profit, to the contrary, she’s against the pursuit of the profit in a short and unsustainable way. What she means, is that profit is of course essential for a firm, but it should be made in a sustainable and responsible way, taking care of the interest of all the stakeholders, expecially the enviroment.
1)After watching the videos , i can realize what the BP case.There is no doubt that the PC damage many social problem and the environment sustainable development in order to achieve it's maximize profit .Although it can come true the objective profit in short-time,it is more than 1 billion taken from the long -term.
ReplyDelete2)Her claim in the lecture is correct. She explained the BP case comprehensively and detailedly introduced the long or short-term damage when the firm happened the accident .She definitely pointed that the company should realize the importance of a long-term development to maintain the company's well-balanced operation
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ReplyDelete1) This isn't the only case they had an oil spill, but it's the most famous. This is an example of how business entities do not create value for its stakeholders. What they actually do is create profit for them selves and they don't care about the environment.
ReplyDelete2) I don't think Margaret Blair is against the logic of profit, because creating profit is important for the existence of the business entity. What she's trying to say is that organizations should care more about stakeholders in the long term
I think that the BP case is one of the best example of when a company decide to operates in a distructive and detrimental way, without taking care of the its social, moral and legal responsabilities, without the respect of the safety rules and when a company put as its goal the maximization of the profit. The BP case demonstrated the consquences of operate without taking care of the long term effect of the actions, of the conseuences on the external environment.
ReplyDeleteI don't think that Margaret Blair is against the logic of profit but I think that she strogely belived that is important to make profit in a sustainable way, to achive the condition of survival and growth of the business entintity in the long term, respecting laws, and morality.
1) I think the BP case is a perfect example of a business that focused sorely on the profit maximization for shareholders and not for the firm itself and all it's primary stakeholders. The mistake made by BP unfortunately is common and is a short-term profit mentality used by most firms today. BP was trying to limit expenses and in doing so we're cutting safety measures which brought them to cause the worst oil spill in the history of humanity and didn't only damage the ecosystem of the Gulf of Mexico and all the tourism and business activities present, but it also affected BP's shareholders who had to pay billions of dollars to clean up the environment.
ReplyDelete2)I'm positive Margaret Blair isn't against the logic of profit, she is actually explaining how to ensure a business's survival in the long-term perspective by avoiding the shareholder's theory.
The British petroleum accident caused a lot of problems to the BP. ..this accident caused a huge economic loss to the stakeholders and had a negative impact on the public opinion. .this accident also made the public opinion to question the responsibility that every company has towards the environment,obviously the companys safety was questioned. ..
ReplyDeleteMargaret Blair thinked that the profit is necessary for the azienda continuity. .but she believed that the profit have to be gained with an ethical management of the azienda by the stakeholders
Moral is not about acting in a proper way when someone is watching you,is about doing the right thing because you cannot do it otherwise. Self development steadily,understanding why there are rules to be followed and,most of all, implementing inner norms you have imposed by yourself on yourself,pushing your personal integrity and behaving ethically are by far one of the most important lessons higher education cultivates in you.The purpose of the higher education is not only to make you learn something new about the area you are orientated, but also to push you and help you become a better person,with high morals and more clear vision.
ReplyDelete"Customers prefer to do business with managers they see acting consistently with morality"/ "One of the ultimate causes of the BP oil spill was shareholder value thinking.Shareholder value thinking possesses the world nowadays.And it drives executives and directors to focus relentlessly on trying to get their share price up not to 5years from now,but tomorrow,if possible". In the video it is well explained what decisions a manager should never take and that if you act in an unadequate way,unethical way, you and you company will suffer damages(as example-to save 1 million dollars a day, the BP company lost 100 billion dollars with damages on the environment in general,customers,etc.)
Business is about improving social welfare,not about increasing your profits in a non-ethical way.If we understand the purpose of the business in a proper way,if we find out that one's welfare should not be a reason for another person's barely survival, we would be more successful.
Margaret Blair is not against profits ,of course, as long as profits are achieved in an accurate way.
Bp oli has for sure done a critical mistake. If you choose to save many in safety, you can earn more money today, in a year, maybe for ever and nobody could find it out. But if something happens ( like in this case), You will have to pay for the consequences. This topics reminds me the diesel-gate scandal of Volkswagen. Firms that don’t care about nothing but the profit maximization don’t deserve to exist! And for sure, they will pay for that.
ReplyDeleteAbout what Margaret Blair said, I believe she sends a very important message about her vision of profit: The firms should not just be focused on the profit, their core goal should be the VALUE, which is a very different aspect, not only for the firm and the shareholders, but for all the stakeholders.
Margaret Blair Does not against the logic of profit because at first of video she says:” I love Business” and if she loves business she loves the profits which we can earn from them. Her idea is the base of the concept of Azienda she thinks that a a Business must provides to satisfy human needs and to have a great costumer satisfaction.
ReplyDeleteAn example of Monotonist Business id BP. They had worked to maximize profits in short-term period.
This led BP to a disaster for Environment at first and for Shareholder.
I think that a good structure and a good safety is the base of a great business, the profit maximization is very important but the way to reach it is important as well.
1) The BP case shows as the maximization of the profit in the short term cannot be a way of act for an organization. This petroleum organization wanted to maximize the profit in a short term for shareholders but didn't care about the impact that this choice could have with the other stakeholders such as the tourism in that area, the situation of the ecosystems but also of the workers and inhabitants. It's impossible to understand how the idea of secure profit in a short term can overcome the awareness of a so terrible disaster by any point of view, economic, social, environmental etc.
ReplyDelete2)Margaret Blair is not against the logic of profit, but in this video she wants to make clear as in the business is not acceptable the logic of the maximization of profit in a short term at the expenses of all the stakeholders of the organization.
1.) The BP case shows that the company concentrated on the profit maximization without concentrating on the interest of the stake holders and also on the environment,for saving 1 million dollars per day it has created a big disaster,for recovering it has costed 100 billion dollars,it has concentrated on the short term profits but it has effected long term.
ReplyDelete2.) in my opinion Margaret blair is not against the logic of the profit but she says that the logic of profit does not effect the nature and the environment and to concentrate on the interests of the stakeholders,business should not concentrate on short term profits which effects the environment.
The British Petroleum case is an example of an extreme profit-maximization logic orientation. This often leads to an unethical behavior and to the misconducts of the managers,so the company doesn't perform in a sustainable way. This kind of logic, moral considerations aside, can also bring to high risks, for example the high costs that were due for the disaster and moreover the dangerous environment where employees work everyday.
ReplyDeleteI fully share Margaret Blair's thought. She is not against the logic of profit, as it is impossible for any for profit organization to survive costs if not exceeded by revenues, But the logic of profit, can't exist without respect to laws, environment, workers etc. Firms must be responsible and operate in a sustainable manner, with due consideration to every stakeholder.