As we all know company and the owner are different entities in business by the common law of the world business. By implementing this law, who is gaining? This writing is about focusing on the owner or shareholders of the company who enjoys or suffers the profits or losses of the business. In the naked eyes, directors or shareholders can happily escape the consequences of the deceived operations in their action with having the profits/benefits of their good time or may suffer the opposite which is highly unlikely. The ultimate sufferers are the end users.
What is the actual reason behind the on-going recession in the world? The very simple answer is ‘sub-prime debt’. In other words, some people, who are normally not eligible to get a loan, were intentionally invited or qualified to have it at highest rate of interest. And the further story we all know as we people are facing the consequences of some greedy stakeholder’s activities. The further question is, did they know what they were doing and what will be the end point? All financial institutions knew that they are going through some unethical activities as the competition is very high in the market and the law of the land ensures that central bank will intervene at some point while they are having the cream of it.
Central banks around Europe and America have poured trillions of dollars into economy but did they punish people who had done unethical activities? No, because they are happily escaped by the business law that is corporation is responsible for that, not the person. Do we not need to think about the next bust in economy that will happen sooner or later? Or we will just label it as another economic cycle of growth-boom and then bust.
Aftermath scenario, some top bosses lost their job but they still got the hefty amount of money based on their contract. Recession is very fruitful to some opportunist business men as they take it as an exit strategy and move on to new or wait for another good time. From my personal point of view, recession brings the best important opportunity to exploit employees. Employees of any organization are more vulnerable position today than they were in few years back. Their mouth is sealed with glue, no salary increase, no problem, no holidays, no problem, and more working hours, no problem. For any new employment is the further chance for the employer as if they say, not exact contract, no problem, low salary structure, no problem, less facilities, no problem. People have families to feed, pay the rent or mortgage, anxiety all around. The only hope, I have job at least. So the winners are still winning.
Finally what are they doing with their gains as they got the cream in good time as well as in the recession? Why they are not investing into new business if it is beneficial for them? They are the opportunist as the anxiety all around the global economy and governments around the globe are struggling, antiques market is booming. Can you imagine that Sotheby’s and Christie’s are breaking records one after another in the time of recession?