Profit sharing and when profits are not shared / by kevin murray

Companies are in the business to make a profit, and to the degree that profits are so made, all to the good.  The thing about profits, though, is the distribution of those profits, so made.  To wit, for a significant amount of corporations, profits so made, are at some percentage, for instance, funneled back into the corporation for research and development or equipment, or provided as dividends to shareholders, or as a form of additional compensation for well-placed employees, or earmarked for investment purposes, or other myriad things.  Those corporations that are absolutely transparent about where and how profits are divvied up, along with the reasoning behind such, have at a minimum provided a service for all those that are connected with the corporation; though the decisions, in regards to those profits, may or may not be fair, or demonstrate conclusively that the best decisions have been made.

 

When it comes to profits, far too often, the distribution or designation of those profits, seems to be left in the hands of those that are upper management, and of which, oftentimes, that upper management is not fully transparent about the distribution of those profits, and typically prefers to keep it that way.  Not too surprisingly, when it is upper management, alone, and therefore without any meaningful input from labor in regards to the distribution of profits so being made, then it is that upper management, that usually is the entity that comes out quite favorably in the distribution of those profits.  Perhaps this is a good thing, or perhaps this is the prerogative of upper management, but what it is not, for a certainty, is that it is not a fair thing.

 

Each person that has performed their duties within a given corporation, should by implication, seem to have a fair right to receive by their contribution, in return, some portion of the profit, so of.  Obviously, the more sharing throughout the entire corporation that there is in regards to profits, the better it is going to be for the rank and file of that corporation; whereas, the lower the number of participants to such sharing, the more it would appear that the rank and file, does not really matter to management when it comes to any additional compensation available to them, from corporate profitability.

 

What we see in how profits are shared within corporations, reflects to a large extent what we see in society as a whole, in which the few get ever richer, while significant swaths of Americans fall further and further behind, often not even earning enough income to make it on their own without some form of governmental assistance.  But why should it be the government that always has to assist? For if corporations would do their good part to share their profits more widely, then more of those that currently struggle, would be better able to hold their own.

 

Further to the point, if corporations would more often share some meaningful portion of their profits with those that have been good and loyal employees to them, they would demonstrate in action to their employees, that their contributions not only matter, but that these valued employees are deserving of more directly reaping some of the good fruits of the harvest, so made.