Profit Interest and Employee Interest

User Generated

pnaqvr70

Business Finance

Question Description

“Capitalism is directed towards the pursuit of profits and unions are directed towards the rights of workers.” Discuss how these opposing viewpoints can be advantageous, yet destructive, to the business community.

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Explanation & Answer

Unless you look at this from a socialist/communist perspective, these should not opposing viewpoints....they should be complementary.  Happier workers are more productive, more customer friendly, more loyal workers...this will lead to increased profits.  Increased profits will mean happier owners who will be incented to pay bonuses and similar things which continue to keep workers happy.  Thus, it really is a virtuous cycle...it is only when one group tries to extract more value from the other than it is contributing that things become contentious (this tends to happen when union labor is represented by extremely liberal/socialist/communist leadership).

Nyrk M (997)
Cornell University

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