Not necessarily. IMO it highly depends whether a company’s goal is short or long term gain.
If you have a hard time competing and every day is a fight anyways, why would you act in a way that is sustainable in the long term?
If you listened to the NYT’s the Daily podcast where they interview a former Boeing quality manager/whistleblower this is clearly the picture that is painted here: Managment doesn’t give a shit if they use potentially broken or dangerous parts, they leave metal debree and garbage inside the wmhull right next to important control lines, in one case they forgot a whole ladder inside.
The 737 Max is not the illness, it is just the first visible symptom.
> IMO it highly depends whether a company’s goal is short or long term gain.
It has been the case, recently, that a company that is traded publicly cannot have a long term goal - any such goal is held in place solely by the ephemeral existence of an autocratic executive and will dissipate once they are removed or retire, instead corporations seek constantly to maximize short term gain since incentive systems like stock options and our current form of performance evaluations reinforce this strategy.
Most of the companies that have had long term clout or tried to invest in long term research have been acquired and butchered by venture capitalists for a quick payday.
Costco (NASDAQ:COST) has a policy of not hiring MBAs and generally only hiring internally. That means the managers are personally invested in the long-term viability of the company.
Such a conservative culture may one day be their downfall, but it won't hasten it as is so often the case of management culture elsewhere.
> a company that is traded publicly cannot have a long term goal
You think Apple or Berkshire Hathaway have no long term goals? Why make such sweeping statements that are easily shown to be wrong, when you can make a more nuanced and possibly true statement easily?
> Most of the companies that have had long term clout or tried to invest in long term research have been acquired and butchered by venture capitalists for a quick payday.
See, this might well be true and point to a real problem.
Though I think the notion that public markets are dumb and impatient and private markets are wise and long-term is a caricature itself.
If you have a hard time competing and every day is a fight anyways, why would you act in a way that is sustainable in the long term?
If you listened to the NYT’s the Daily podcast where they interview a former Boeing quality manager/whistleblower this is clearly the picture that is painted here: Managment doesn’t give a shit if they use potentially broken or dangerous parts, they leave metal debree and garbage inside the wmhull right next to important control lines, in one case they forgot a whole ladder inside.
The 737 Max is not the illness, it is just the first visible symptom.