Do Corporate Incentives Work?

[Andonyx]

I have always been in doubt that giving corporations incentives to act as respobsible global citizens did any good. I was taught in business related classes that for a for profit company the singular goal is profit, and I agree with that.

The problem is when seeking that profit begins to cause harm tot he wealfare of the average citizen, a conflict arises which a corporate entity will not see to correct itself, no matter how much harm is done.

In particular I have never believed that oil or auto companies would willingly adopt measures that restrict pollution or reduce waste. And I seem correct in light of this:

http://www.cnn.com/2003/TECH/science/05/29/exxon.climate.reut/index.html


DALLAS, Texas (Reuters) -- Exxon Mobil Corp. shareholders this week voted down proposals concerning global warming and renewable energy, as the head of the global energy giant said profits take precedence over social causes.
"We won't jump on the bandwagon just because others may have a different view," Chief Executive and Chairman Lee Raymond said. "We don't invest to make social statements at the expense of shareholder return."

But I also dislike extreme government intervention. So what's the solution, how does it work?

[aerocontrols]

I don't understand how your post relates to the title you gave it.

Are you contending that Exxon has turned down some incentives, and if so, which ones?

MattJ

[Andonyx]

No you're right, I guess I didn't make the connection clear. It just seems to me that this attitude points to incentives being an unlikely cause of action.

If the attitude is profit over all. I don't think the Government can hope to offer incentives that appeal to this notion. Incentives in the past have always been about easing the burden of making less waste, not making it more financially appealing to do so.

Look Ford and GM just both pulled their further plans for electric cars. The simple fact is they were not selling well. I'm not suggesting you force companies to make products people don't want, but in effect they were rejecting incentives form a state level, since at least four states that I know of now offer major tax incentives for manufacturers who sell a certain percentage of alternative fuel cars. California is obviously one of them, and obviously they have a large auto market.

Ultimately tax incentives and the like that state or federal governments can offer can't compete with pure profit.