Esdena: Social Marketplace
Wednesday, September 06, 2006
  Welcome back MIT! and Why Do People Hate Corporations
First of all, welcome back MIT students! Good luck with your 1st day of class and all that!

Anyhow, I don't know about elsewhere, but at least here at Rice, people HATE corporations. Businesses and extreprenuers are seen as mercenary, greedy pigs that care only about money.

These people just never seem to remember their own parents probably will not have a job if it werent for these businesses, the very school that they go to is probably funded by an entreprenuer, and the TV, A/C, car... that you "can't live without" are probably invented, materialized, and promoted by corporations.

There are several questions I want to ask:
Did Greenpeace invented Hybrid cars? Or did Toyota?
Did Friends of the Earth revolutionized the energy industry by introducing more efficient fuels? Or did BP?

My point here is, I believe for-profit corporations are more effective than non-profits organizations in achieving social means.

Why? Because of tax breaks provided to companies when they make donations.

What? Yes, because of the tax breaks, very often, a company almost HAVE to donate some money. I mean, financially, they will have to pay anyway, they might as well build a good rep by donating those money they would otherwise in paying in form of tax. Therefore businesses will always donate to non-profits which fit the following criteria:

1. Have close connections with the corporations
2. Throw a good (by good, I mean luxurious most of the time) charity event
3. Able to create good PR for the business

Ok, so NONE of these 3 says anything about the non-profits ability to achieve their social goals. My point is, because non-profits are removed from direct force of the market, they are NOT as efficient as for-profits to benefit the society.

Because lets face it, you will only buy a coke for $1 if you think it worth more than $1 to you. What is a better prove of contribution to the society than that?

You can disagree with me, but this is what I think.

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Hi Dominic - I started to comment here, but my reply got way too long. Take a look at for my answer to your questions.
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