1. Private Vice
v
Public Benefit
Nick Bravery
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2. Before the Free Market
 No economic growth
For the overwhelmingly majority:
 A short lifespan
 Oppression
 Unfulfilling lives
For a tiny minority:
 Education, wealth, participation in political processes
and freedom to travel
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3. What’s happened since?
Economic growth Votes for every adult
Liberal democracy Choose if & who to marry
Privacy
Whether to have children
Freedom of speech
Due process of law Where to live
Equality before the law Whether to travel
Representative and transparent Longer lifespan
government
Leisure opportunities
Equal rights & entitlements
Technological & medical
advances
Access to education and
healthcare………..
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4. The Triumph of Capitalism
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5. Paradox
We are all “better off” yet success is based on:
exploitation of labour, selfishness, greed and the
desire to accumulate wealth.
From a moral viewpoint - “Greed is a sin”
Or should this natural inclination be harnessed?
A dilemma - Private Vice/Public Benefit?
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6. The Purpose of a Company
Its primary responsibility is
to serve its customers; to
provide the goods or
services which the company
exists to produce. Other
responsibilities eg to
employees and society exist
to support the company’s
continued ability to carry
out its primary purpose.
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7. No mention of Profit?
Profit is not the primary goal but rather an
essential condition for the company’s
continued existence.
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8. Jo Jo Maman Bebe
“Our energy and effort is put into keeping our customers
happy.”
“We are committed to providing a first class service
through honesty, integrity and respect for our
customers' and employees' point of view.”
“Our intention is to retain our independent status which
permits us to ensure that attention to detail, customer
service and corporate social responsibility are never
compromised in pursuit of increased profit.”
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9. Jenson & Meckling – 1976
Align executive self
interest with
shareholders
interest
i.e. increase
shareholder value.
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10. Well, not quite………
 Annual return from 1933
to 1976 = 7.5%
 Annual return from 1977
to 2010 = 6.5%
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11. Corporate behaviour
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12. Articles of Association
….the directors are responsible for the
management of the company’s business, for
which purpose they may exercise all the
powers of the company.
Unless Articles say otherwise.
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13. Michael E Porter - 1979
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14. Michael E Porter - 2011
 Capitalism under siege
 In a bubble
 Societal issues are at the periphery
 Companies must take the lead
 Principle of shared value
 Company progress and social progress
 Capitalism unparalleled for meeting human
needs
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15. Reasons for optimism
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16. Some “Nudges”
 Private Vice/Public Benefit
 Customers are the primary
responsibility
 Closer links: Private, Public, Charity
and Voluntary
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