Profits Over People: The Tragic Consequence of Corporate Greed

In the heart of corporate America, a troubling trend has taken hold—a relentless focus on profits at the expense of people. Across industries, from food service to property management, businesses have increasingly prioritized short-term financial gains over the well-being of their employees and customers. This dangerous philosophy not only undermines the quality of service but also corrodes the moral fabric of our society. It is a sickening reality, one that is perpetuated by a widespread lack of accountability and a pervasive unwillingness to stand up for what is right.

The Downfall of Corporations That Prioritize Profits Over People

When corporations prioritize profits above all else, they inevitably sow the seeds of their own destruction. This is evident in numerous corporate downfalls where the focus on cutting costs and maximizing revenue has led to catastrophic failures. Take the retail industry, for example. Once a behemoth of American retail, Sears was a household name known for its vast selection of products and customer-centric approach. However, in the pursuit of profitability, Sears began cutting labor, reducing inventory, and slashing customer service—decisions that alienated loyal customers and led to the company’s ultimate demise. What once was a retail giant became a cautionary tale of how short-sighted financial decisions can lead to long-term ruin.

In contrast, companies like Wegmans have thrived by adopting a different philosophy—putting people first. Wegmans, a family-owned grocery chain, is consistently ranked among the top companies in customer satisfaction. Their approach is simple yet powerful: invest in employees, and they will take care of the customers. Wegmans provides extensive training, offers generous benefits, and creates a supportive work environment. As a result, their employees are engaged and motivated, which translates into exceptional customer service. Wegmans’ commitment to its employees and customers has built a fiercely loyal customer base and has earned the company a reputation as one of the best employers in the industry.

Another example is Costco, which pays its employees well above the industry average and offers comprehensive benefits. This investment in their workforce has led to high employee retention rates and a level of customer service that keeps shoppers coming back. As Costco’s co-founder, Jim Sinegal, famously said, “If you hire good people, give them good jobs, and pay them good wages, generally, something good is going to happen.” This philosophy has proven successful, as Costco continues to thrive while other retailers struggle.

In the property management industry, the obsession with profits has led to widespread discontent. Property management companies, driven by the desire to maximize revenue, often resort to raising rents to exorbitant levels, regardless of the impact on tenants. This practice is not only unethical but also unsustainable. In many cases, the constant rent hikes drive residents out of their homes, leading to higher vacancy rates and ultimately lower profits. Moreover, the recent lawsuit involving RealPage, a property management software company accused of colluding with landlords to artificially inflate rents, highlights the unethical and potentially illegal practices that have become all too common in the industry. This case serves as a stark reminder of the lengths to which some companies will go to protect their bottom line, even if it means violating the rights of their tenants.

The Importance of Standing Up for Yourself

One of the most disheartening aspects of this profit-driven culture is the widespread acceptance of unethical practices. Too often, employees and customers alike feel powerless to challenge the status quo. Whether it’s a server in a restaurant who fears losing their job if they speak out about unfair working conditions or a tenant who feels helpless in the face of rising rents, the result is the same: silence in the face of injustice.

But standing up for oneself is not only a moral imperative—it is also essential for driving change. In the property management industry, there are examples of employees and even entire organizations who have chosen to stand up for residents rather than exploit them. These individuals and groups advocate for fair treatment, reasonable rent increases, and ethical business practices, often at great personal and professional risk. Their courage serves as a beacon of hope in an industry where profit margins are often prioritized over people’s lives.

In the food industry, standing up for oneself can mean refusing to accept substandard working conditions or demanding fair wages. It can mean pushing back against practices that compromise food quality or service standards. It is not an easy path, but it is a necessary one. When enough people stand up and demand better, change becomes possible. This is particularly true in industries where customer satisfaction is directly tied to employee well-being, such as restaurants and retail. When employees are treated with respect and compensated fairly, they are more likely to provide the kind of service that keeps customers coming back. This, in turn, leads to a more sustainable business model—one that does not sacrifice long-term success for short-term gains.

Examples of Companies Putting People First

Wegmans and Costco are shining examples of companies that have embraced a people-first philosophy and reaped the rewards. Wegmans’ focus on employee well-being leads to high levels of employee engagement, which in turn drives exceptional customer service. The company’s extensive training programs ensure that employees are well-prepared to meet customer needs, while their generous benefits foster loyalty and reduce turnover. Wegmans’ success is a testament to the idea that when you invest in people, they will invest in your business.

Similarly, Costco’s commitment to paying fair wages and offering comprehensive benefits has resulted in a loyal, motivated workforce. This not only enhances the customer experience but also contributes to the company’s long-term success. Costco’s refusal to cut corners, even during tough economic times, has set it apart from competitors who prioritize cost-cutting over quality. By maintaining high standards for both employees and products, Costco has built a strong brand reputation and a devoted customer base.

Starbucks is another company that has consistently prioritized its employees. Howard Schultz, the former CEO, believed that treating employees with respect and offering them meaningful benefits was the key to the company’s success. Schultz once said, “We can’t exceed our customers’ expectations if we don’t exceed our employees’ expectations.” This belief has driven Starbucks to offer benefits such as healthcare, stock options, and tuition assistance, making it a desirable employer and fostering a culture of loyalty and pride.

These companies prove that putting people first is not only the right thing to do, but it’s also good business. They show that a focus on employees and customers, rather than just profits, can lead to long-term success and sustainability.

The Ethical Transparency Association’s Mission

At the Ethical Transparency Association (ETA), we believe that change is possible, but it requires a collective effort. We are committed to shining a light on unethical and illegal business practices, from exploitative labor conditions to deceptive property management practices. Our goal is to hold corporations accountable and to advocate for a business model that puts people before profits.

Unfortunately, too many corporations have found ways to skirt the law, exploiting loopholes and engaging in practices that, while technically legal, are morally reprehensible. These practices include everything from using complex financial instruments to avoid taxes, to colluding with competitors to fix prices, to exploiting workers through unfair labor practices. The RealPage lawsuit is just one example of how property management companies have used sophisticated software to manipulate the rental market, driving up rents and pushing out tenants who can no longer afford to stay. This is not just unethical—it is a betrayal of the trust that tenants place in their landlords and property managers.

But the problem is not limited to property management. In the food industry, companies have been known to use similar tactics to cut costs at the expense of quality and service. Whether it’s using cheaper ingredients, reducing portion sizes, or cutting back on staff, these practices are all designed to maximize profits while minimizing costs. But they also lead to a decline in customer satisfaction, as well as a deterioration of the company’s reputation. Over time, this can result in lower sales, decreased profits, and ultimately, the failure of the business.

At ETA, we are working behind the scenes on several projects aimed at exposing these unethical practices and advocating for a more transparent and accountable corporate culture. While we are not yet ready to go public with our findings, we are committed to making a difference. We believe that by shining a light on these issues, we can help others who are facing similar challenges and encourage them to stand up for what is right.

The Need for Leaders Who Are Truly Open to Feedback

One of the biggest obstacles to change is the refusal of many corporate leaders to listen to feedback. Too often, leaders are more interested in maintaining the status quo than in making the changes necessary to improve their businesses. They surround themselves with yes-men and ignore the voices of those who are willing to challenge them. This is a recipe for disaster. In today’s rapidly changing world, businesses that refuse to adapt are doomed to fail.

Yet, there are examples of leaders who have bucked this trend, choosing instead to embrace feedback and make the necessary changes to ensure the long-term success of their companies. One such leader is Howard Schultz, former CEO of Starbucks. Schultz famously said, “We can’t expect our employees to exceed the expectations of our customers if we don’t exceed the expectations of our employees.” Under Schultz’s leadership, Starbucks became a model for how treating employees well can lead to greater customer satisfaction and, ultimately, higher profits. By listening to feedback from employees and customers alike, Schultz was able to create a company culture that values people over profits—and the results speak for themselves.

Another example is Danny Meyer, CEO of Union Square Hospitality Group, who pioneered the concept of “enlightened hospitality.” Meyer’s philosophy is simple: take care of your employees first, and they will take care of your customers. This approach has led to some of the most successful and beloved restaurants in the country, proving that putting people first is not only the right thing to do, but also good for business.

But for every leader like Schultz or Meyer, there are countless others who cling to outdated practices, refusing to acknowledge that the world has changed. This is 2024, not 1952. The old ways of doing business—cutting costs at any cost, prioritizing profits over people, ignoring feedback—are no longer viable. Businesses that fail to adapt will inevitably find themselves left behind, victims of their own short-sightedness.

Conclusion

The corporate world is at a crossroads. On one side are those who continue to prioritize profits over people, cutting corners, exploiting loopholes, and ignoring the voices of those who demand change. On the other side are those who believe that a better way is possible—one that puts people first, that values transparency and accountability, and that listens to feedback and adapts accordingly.

At the Ethical Transparency Association (ETA), we are committed to being a part of this change. While we are not yet ready to bring our work into the public eye, we are working tirelessly behind the scenes to expose unethical practices and advocate for a new way of doing business—one that puts people before profits. We believe that by standing up for what is right, we can make a difference. And we hope that when the time comes, you will stand with us.

Together, we can create a world where transparency and accountability are not just empty words, but guiding principles that lead to a more just and equitable society for all….