Sunday, March 02, 2014

Apple, The Environment, and ROI

Here is an interesting story (http://m.slashdot.org/story/198835) from the recent Apple shareholder meeting in February 2014. Despite the fact I am quite deep in the Apple ecosystem I can say I do not think they are a perfect company. I have a serious love/hate relationship with the draconian measures they take to protect the App Store as the only source for iOS software for instance. But I find this story a slim ray of hope for corporate America. You see, the corporation is recognized as a legal entity ( More or less meaning as a person from a legal standpoint ). And yet many economic experts seem to feel they should only pursue profit (ROI, or return on investment). That they should operate on economic abstraction rather than as a member of the community. This seems to indicate for folks of this mindset there should be no moral basis in decision making. If there is a detrimental environmental method that legally allows the company to make more money than an environmentally friendly option, then adherents to this mindset believe it is required that the company pursue the option with the highest ROI. 

But what is a good ROI? Profits in the next quarter are hardly the only return on investment. Some are far more complex. How do you place a price on being a good member of the community? What is the value of Apple continually topping surveys for most highly regarded/trusted etc brand?

If Apple were at risk of going insolvent as a result of these decisions then Cooks actions would be reckless. However, seeing as Apple is setting record after record after record in their quarterly profits... And they hold massive cash reserves I think it is safe to say the can afford to make some decisions based on long term sustainability and or just because they make them a better member of the community. This is a generally prefferable mode of operation for any corporation, as opposed to being a soulless economic vortex hell bent on concentrating wealth for its share holders. 

No comments: