Count me skeptical, but Mark Cuban says

[HAB911]

coronavirus will end up improving capitalism with companies putting employees first

https://www.cnbc.com/2020/04/08/mark-cuban-says-coronavirus-will-end-up-improving-capitalism-with-companies-putting-employees-first.html

Capitalism will become more “compassionate” as a result of the coronavirus pandemic, billionaire entrepreneur Mark Cuban said Wednesday.

“I think capitalism is going to become a lot smarter and a lot more compassionate because of what we’re going through,” Cuban said on CNBC’s “Closing Bell.”

Cuban, owner of the NBA’s Dallas Mavericks, said he thinks executives will now recognize that they need to put employees first. The consequences of not doing so will be greater now than it was in the aftermath of the financial crisis, when social media was still in its nascent stage, Cuban said.

“It can’t just be about shareholders,” Cuban said. “In fact, you have to put employees ahead of shareholders.”

Shareholders will ultimately reward the companies that do so by awarding their stock a higher multiple, Cuban contended.

[DEbluedude]

1. I've had this discussion with colleagues.

The problem I see is that to have compassion for employees one must have a heart. Most of the senior corporate level management that I've dealt with are not only heartless, they are soulless. Looking into their eyes is like looking into a deep dark chasm. It's literally all about Wall Street. Employees ARE nothing more than a number. I too, am a skeptic.

[Solomon]

2. What he meant to say is that it SHOULD change

capitalism. Count me skeptical as well.

[brush]

31. Most corporate bosses and short-sighted a-holes looking no far forward than...

the next quarters' earnings report. If the had any sense they be all in for single-payer healthcare they would've have to fund and pay workers to keep keep track of. Years ago when the auto industry was teetering on the brink, it was reported that every car was $1500 more expensive because of employer sponsored healthcare.

Dumb. Just think how much more competitive American cars would be against Japanese and German cars if they didn't have that added on cost.

Now it's probably even more. Same with all other industries that export their wares.

[mercuryblues]

3. That might be his vision

I see it more like a smoke cloud.

Take Verizon, they are laying off thousands of people. I forget the company name, but they are part of Spectrum, raising their starting pay to $20.00 an hour.

Not so sure about shareholders rewarding companies. Companies will be rewarded by their employees. They'll create a loyalty bond between the 2. When a company show they value employees, employees will value the company.

[unblock]

4. is that based on the 1918 pandemic being followed by, uh, the roaring '20s?

[hatrack]

5. Bullshit. They'll air a bunch of ads about how much they care . . .

And when the pandemic dies down, it'll be back to the same vandalism as before.

[Boomerproud]

7. I am getting so sick of those "We're here for you"

ads that run every 2 minutes.

[hatrack]

10. If there's one truly nimble American industry left, it's the bullshit industry . . .

[Windy City Charlie]

11. Agreed

Totally agree! And by the time the 30-second commercial is over I'm left saying, "you're saying you're here for us, but you didn't say how."

[durablend]

36. "Well we're here to take your money"

"Isn't that enough?"

[ConnorMarc]

21. Basically...

To think otherwise would be wishful thinking. And that's putting it nicely.

[Renew Deal]

6. He's right, but it will only last until companies are under pressure to lower costs again.

[WhiskeyGrinder]

8. LMAOOOOOOOOOOOO

[Crabby Appleton]

9. I share my skepticism- bigly

[safeinOhio]

12. Not until all of those share holders

are the workers.

[Laelth]

13. The law would have to change.

Companies and corporations have binding, state charters and a whole body of law that says the Board of Directors, the CEO, the CFO, and all of management MUST serve the interests of shareholders. Employees are but a means to an end. Unless corporate law changes, this dynamic will not change.

-Laelth

[SheltieLover]

14. Dems must get rid of corporate personhood

Last edited Thu Apr 9, 2020, 08:29 PM - Edit history (1)

Corporations only see bottom line & employees aren't valued as sentient beings. They are like kleenex in a box. Single use and throw away for a new one. We call it the kleenex theory.

[Laelth]

19. I would like to see that happen.

It will take a liberal Supreme Court to do it.

Even that needed reform, however, would not change fundamental corporate law. Companies are legally bound to act in the interests of their shareholders, not their employees.

-Laelth

[SheltieLover]

22. That is repulsive!

Thx for sharing that!

[Laelth]

33. Back in the day ...

... when the English common law first ALLOWED corporate entities under Queen Elizabeth I, they were royal charters that the monarch would grant ONLY IF that company or corporation served the public interest. These days it’s merely assumed that making profit, however you can, serves the public interest. It’s not true, of course, but that IS the guiding principle of the law in regards to corporate entities these days.

-Laelth

[Phoenix61]

15. That's not true. The board is elected

by the stockholders. If the stockholders don’t like what the board is doing, they fire them and elect someone else.

[Laelth]

16. Both statements you made in the previous post are true.

Neither statement invalidates my point that the fundamental, legal purpose of a corporate entity is to serve the interests of its stockholders.

-Laelth

[Wounded Bear]

17. Capitalistic woo...nt

[MissB]

18. NPR On Point's podcast had a deeper discussion

With him on the topic. It’s 48 minutes long, and worth it to listen to before dissing him completely.

He talked about how companies act now will be important later. How they treat their employees will be part of how well the company moves forward after this. He says that if an employee is paid so little that they need government assistance, then it’s a failing of the company. He said $15/hr is a minimum.

It’s 48 mins long; I can’t possibly capture all of the content here.

[Delphinus]

34. Thanks -

I'll check it out.

[Takket]

20. not a chance in hell. if that were true unemployment wouldn't be exploding right now

[TeamPooka]

23. I see the opposite happening. Less compassionate capitalism, if that's possible, will be the new

normal

[JCMach1]

24. Yeah, right...

[HarlanPepper]

25. There's literally zero chance this happens.

[Skittles]

26. not as long as republicans still exist

no indeed

[Tribetime]

27. Action speaks louder than words

[empedocles]

28. 'Can't be just about shareholders' - or executives with stock options!

[Caliman73]

29. Capitalism never becomes compassionate unless forced.

This is what happens with rich people. They lose touch with the reality shared by the majority because they do not have to live in it. Just like the message from Geffen aboard his yacht or statements from Gwyneth Paltrow, they are free to make those assumptions because they don't experience the cruelties of Capitalism.

Capitalism, unless sufficiently restrained will ALWAYS grind people up and move toward the concentration of wealth into fewer and fewer hands.

[Laelth]

35. +1

This is why I am a liberal. Liberalism seeks to preserve capitalism by preventing its greatest excesses. Liberal politics seek to spead the wealth such that we all benefit from capitalism—not just a few oligarchs.

-Laelth

[CanonRay]

30. It happened after the plague

[Baked Potato]

32. What a crock!

Run that by your billionaire buddies...