By: Kamil Toume
The reason the planets orbit the sun because the gravitational power of the Sun keeps them in orbit. The same for the moon, the gravity of the earth pulls the moon to revolve in its orbit. The current greedy capitalist system pulls companies to rotate around it. The capitalist system gravitational components are, making profit is the goal number one, producing unneeded products, manipulating people’s desires, and crunching more and giving back less. Do we blame companies which strive to meet unrealistic financial targets and please the analysts and investors expectations? Or we should blame the system. Most companies’ pursuit to excessively hit their financial targets come in response to the system which is orchestrated and designed by the greedy and selfish egocentric people who are sitting in their unreachable Ivory towers. Bending the rules to the desires and pressures of the stock markets has been the practice. It is about posting astronomical earnings and pleasing analysts. It is the obsessive greed of most companies to project earnings which are consistent with the wishes of the investors, the analysts, and the banks.
In the last financial crisis, most corporations and investment banks made their finance departments bend accounting rules to meet high financial expectations. They tried to duplicate their success by hiding the problems and hope that everything gets better. They had mounting losses and skyrocketing debt in cronies of balance sheets and records. On the surface, their financial statements looked healthy, but they were maliciously cooked to confuse and trick anyone who reads them. The unjustified growth and greed left fraud unstoppable. Extracting more wealth and committing more fraud justified all the means to achieve the greedy end.
The challenge today is how many business leaders diagnose the problems quickly, prescribe the solutions and administer them effectively to root out the disease completely. Some people would pause and say that it is impossible to change the macro corporate capitalist system that benefited the financial elite. Change does not happen overnight. The larger the number of the leaders who effect a positive change in their organisations, the quicker the change happens one step a time.