:15:01
Even someone living under
a banyan tree is dependent
:15:05
on support from someone.
:15:08
Economic leg has to be
addressed by everyone.
:15:12
It's not just
a business issue.
:15:15
But unlike someone
under a banyan tree
:15:18
all publicly
traded corporations
:15:20
has been structured
:15:21
through a series
of legal decisions
:15:23
to have a peculiar and
disturbing characteristic.
:15:27
They are required
by law
:15:29
to place the financial
interests of their owners
:15:32
above competing interests.
:15:35
In fact the corporation
is legally bound
:15:38
to put its bottom line
ahead of everything else
:15:40
even the public good.
:15:45
Thats not
a law of nature
:15:46
that's a very
specific decision.
:15:48
In fact
a judicial decision.
:15:50
So theyre concerned only
for the short term profit
:15:53
of their stockholders who are
very highly concentrated.
:15:59
To whom do these
companies owe loyalty?
:16:05
What does loyalty mean?
:16:06
Well it turns
out that
:16:08
that was a rather
naive concept anyways
:16:10
as corporations are
always owed obligation
:16:13
to themselves to get large
and to get profitable.
:16:16
In doing this
:16:17
it tends to be more
profitable to the extent
:16:20
it can make other
people pay for the bills
:16:23
for its impact
on society.
:16:26
There's a terrible word that
economists use for this
:16:28
called externalities.
:16:30
An externality is the effect
of a transaction
:16:35
between two individuals.
:16:38
Third party who
has not consented to
:16:41
or played any role
in the carrying out
:16:44
of that transaction
:16:45
And there are real
problems in that area.
:16:47
Theres no
doubt about it.
:16:51
Running a business is
a tough proposition.
:16:55
There are costs to be
minimized at every turn
:16:59
and at some point
the corporation says