Timberland and Community Involvement

             In my opinion, all comes down to the two quotes that were mentioned
             in the end of the case study, one by Milton Friedman ("corporations that
             give away money are stealing from the shareholder") and Margaret Mead
             ("never doubt that a small group of thoughtful committed citizens can
             change the world. Indeed, it is all that ever has") and to a conclusion on
             whether Timberland can actually combine the company's responsibility to
             create value for its shareholders with the engagement preached by Swartz in
             his public statement. It is my current opinion as now that it cannot.
             Any company that is involved in a capitalistic market has a sole main
             goal: maximize its profits, in a sense that this also maximizes the overall
             value of the company for all shareholders involved. The question we have
             to ask ourselves here is how involvement with City Year maximizes the
             overall value of Timberland. Of course, at a first glance, the conclusion
             may appear rather straightforward. Involvement in such a community
             engagement, following Milton Friedman's ideas, means taking money away from
             the shareholder and spending it in a lesser interest than that of the
             company. We may wonder what the company could have done with the $5
             million it spent in its relationship with City Year in the 5 year period of
             time. Investments in Timberland, additional measures to avoid the
             depression of the company, creating new workplaces and protecting the old
             ones- these are only a few of the possibilities that may have appeared.
             It is most probable that had layout problems not appeared in the 90s,
             the question of what actually maximizes the company value would have never
             appeared. However, as such, it is natural that many of the shareholders
             see the annual $1 million that goes to City Year as jobs. This is only
             natural: how can a competitive company at a time when it has begun to lay
             off its employees,...

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Timberland and Community Involvement. (1969, December 31). In MegaEssays.com. Retrieved 20:25, April 23, 2024, from https://www.megaessays.com/viewpaper/201095.html