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For an example, think of a heavily bureaucratic Japanese company where 'cos of loyalty to "tradition" and "rules", "corruption", "greed", etc., the directors/board refuses to downsize or scrap the company. The resulting factor is losses of trillions of yen(around a few billions worth USD/Euros) which sometimes has lasting repercussions on the economy and local businesses.


The other side isn't funny either, however.

We recently have the problem of Nokia shutting down a manufacturing plant with around 1000 people losing their jobs in favour to another plant in Romania - where the people earn usually less, compared to other European standards.

Meanwwhile, Nokia gained several millions or even more as pure profits.

We here in Germany still believe in kind of an social responsibility of companies - of course not that exaggerated as in your example, but still ...

Here in Germany we call companies which move from country to country in order to gain more profits as "locusts", because they settle down, eat everything, and travel further. What they leave behind is wreckage, but tey don't care in their every-hungry mood.


Yeah, some companies these days try to look for jobs for their employees if they're doing mass retrenchment or if the plant/office is closing down. But that's probably 'cos of the laws passed in various states/countries. Otherwise, I doubt that most of them would even bother.

And yep, retrenchment is nasty. Well, having some form of social responsibility isn't that bad: if there's a way to rescue a company and the board takes the shortcut instead and kills it, then it's really messed up. It's only when things fall to the extreme(obsession towards laws, rules, etc.) that problems could go really wrong.