Beginning the class I did not know what the course entailed but I am glad I took this class because it opened my eyes to a whole new world. Coming in as a business major its a whole new aspect into life and a way of thinking. I want to discuss the aspect of the economy and business and how this correlates to business. Corporations try and use loopholes in the rules and regulations to continue to manipulate the market in the favor. That is when the government has to enforce regulations to make sure the conduct of these corporations are done properly. After being in the finance industry for quite some time I have noticed that the most ethical companies are the companies that are the most successful in the long run. Investors look to see which companies have the best management and implementation of these practices that will last in the long run. The companies that try and manipulate the labor forces by going and doing business in other countries will have investors act negatively towards the corporations by pulling their equity if the companies are not acting correctly, or ethically. Watching for the companies that act ethically will act in ways of sustainability will provide the companies with practices that include helping the environment and reduce waste. for example if companies think of ways to reduce waste, this will reduce costs and thus increase their earnings. Alternatively if companies just try and look for loopholes to continue to act in ways for profit only, will be the corporations that eventually die out unless they change their practices. For example my firm votes on proxies on the behalf of the clients so i know that recently the proposal for Exxon to provide more transparency on their practices passed. This will make the company have to comply to these practices and thus change to company for the better. This means that the company should change up their business into a more environmental approach by discontinuing the current line of business in heavy investments on oil, coal, and natural gas and move to a business more closely tied to renewable energy like solar and wind, which is a start.
Most of the time individuals do not know the power they hold as shareholders towards the corporations. I have seen items for proposals in proxies proposed by individuals who own small shares, even 25 and their ideas have made it to the ballot. If a person gives a great idea that makes it to the ballot and has proper support from the big investors, the sky is the limit to the power they hold. This just goes to show that the people are still in power in comparison to the big corporations that seem to be in charge. Enrolled in this class has opened my eyes to the world of possibilities once the people join together and get involved in something they believe in.