Kickstarter has become a For Benefit corporation, which means they can now "legally" pursue things other than profit. Makes me think:
- Is US Corporate Law truly *that* tilted toward Shareholder enrichment? I guess the only reason it seems odd is the amount of 'charitable' work corporations do today. But if the only reason they do such charitable things is to increase short (tax breaks) and long (marketing) term profitability, then it would fit. Fit the US Code, that is - not the definition of charity.
- The Kickstarter announcement (https://www.kickstarter.com/blog/kickstarter-is-now-a-benefit-corporation) gives a brief explanation of what a For Benefit corporation is, and then proceeds to talk about the x% post- profit funds that will go into supporting A, B, C causes. I think they have it wrong. In 'sacrificing' the pursuit of sheer profit for the sake of benefiting others besides shareholders, a more organic approach should be taken. One that is symbiotic, and which has the potential to actually - shudder! - increase profitability in the long run. Why not implement policies that serve to enrich staff, inventors/clients, and customers instead of simply giving away money to causes that align with the board's outside agendas? That is, why not implement policies that embody the philosophy expressed by a young Dave Packard at a roundtable of senior management types over 60 years ago:
"Somehow, we got into a discussion of the responsibility of management. Holden made the point that management's responsibility is to the shareholders – that's the end of it. And I objected. I said, 'I think you're absolutely wrong. Management has a responsibility to its employees, it has a responsibility to its customers, it has a responsibility to the community at large.' And they almost laughed me out of the room."
– David Packard, Stanford Magazine (http://alumni.stanford.edu/get/page/magazine/article/?article_id=42103)
- The "give money away" idea reflects the failed thinking of Johnson's Great Society. Unearned gain will be squandered. Almost every time.
