I came across this article today listing the 10 most charitable companies. Many of them are companies that are under scrutiny from the public including Wal-Mart, Bank of America, Wells Fargo, Exxon Mobil, Morgan Stanley, and Goldman Sachs.
My comments on this is that these huge donations from these companies may be okay because most likely they got publicity out of their donations. This would make the public view them as a caring company leading to consumers wanting to use their products over other non charitable companies. Also, many of these companies are under current scrutiny from either the occupy protesters regarding the banks listed on here as well as the thousands of Wal-Mart protesters.This could be a way for the companies to convince these protesters that they are doing their social justice so that the protesters stop their attempts to ruin these companies image.
In a contrasting view, it may be better for these businesses if they used this money to make their products and services better and cheaper for everyone. For example, instead of Bank of America giving away $207,000,000, they keep most of that money and can use it to offer higher interest rates on CD's and take away ATM fees. Or Wal-Mart could offer lower prices that they already do. In class, Rizzo said that from the competition that Wal-Mart creates in the market, it saves consumers $263 billion a year. This would create even more competition leading competitors to lower their prices and find more efficient ways to produce their products so that they can continue to compete with Wal-Mart leading to a much bigger savings for consumers. Wal-Mart could also use this money to start giving out benefits to workers which would remove a major reason why people are so against them. .
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