Individualism Mechanism in Modern Corporations

In this paper, I will primarily discuss the key negative Individualism existing In corporations, mainly reflected In their responsibility to society and employees, leading to effective resolutions for business management. The corporation is an institution – a unique structure and set of imperatives that direct the actions of people within it (Aback 1). The corporation itself is an organic whole, and every single employee is part of the whole. In this case, it is mutual responsibilities between the employee and the corporation for each other.

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A truly reinvent corporation should build an outstanding culture, which is that the corporation’s excellence is not from the demands to their employees but how to treat their employees. However, for the employee, concerning the corporation should be initial issue. On the basis, they should help to create and protect a favorable Image and reputation for their corporation. Individualism Is of two kinds In corporations: one Is positive Individualism and the other Is negative Individualism. Positive Individualism Is In the context of collectively, to pursue and maximize their Interests based upon protecting common benefits.

However, the important characteristic of negative individualism is self-centered and egoism, which basically is behaved in two respects, the social responsibility and the employee responsibility. The corporation is total a psychopath in Dry. Hare’s opinion, they are singularly cholinesterase; are irresponsible, try to manipulate everything; are grandiose; lack empathy and have asocial tendencies; refuse to accept responsibility; are unable to feel remorse and finally relate to others superficially.

Friedman believes: they must make as much as money as possible for their shareholders. This Is a moral Imperative. Executives who choose social and environment goals over profits – who try to act morally – are, in fact, immoral (34). The most obvious absence of social responsibility of “externalities”(Aback 60), is the negative effect corporations have on the environment and humanitarianism. One well-known example, which is also provided by Aback, is that the General Motors (See Appendix) issue in 1993.

A car slammed into the back of Patricia Andersen’s 1979 Chevrolet Malibu car on the way her driving home on a midnight, with her four children seating in the backseats, causing it to burst into flames. After the preliminary examination, “the evidence in the trial showed that General Motors had been aware of the possibility of fuel-fed fires when it had designed the Malibu and some of its other models as well” (Aback 62). The General Motors put profits above public safety. It is a classic case of individualism in the corporation for pursuing and maximizing the profits. Corporate social responsibility is like the call boxes. It holds out promises of help, reassures people, and sometimes works” (Aback 50). Under the circumstance that pursuing maximum economic benefits is the fundamental target of equines, it is inevitable that social responsibility has been overlooked. The managers of corporations should change from pursuing the short-term benefits maximum to the long-term benefits maximum, and that is the practice of focusing public interest.

The negative individualism is also mainly manifested within the corporation, which was explained in chapter two of The Corporation, and Aback holds that executives do not own the profits; they must act in the interest of the shareholders. What’s more, one of the powerful examples is the Body Shop. (See Appendix) 2 3 At the beginning of Anita Rowdier found the Body Shop, it was truly a triumph. “Rowdier always refused to separate her personal values from her business. That’s what made her business unusual”(51).

Rowdier found her alter ego in her company, and she really brought her heart to the workplace. She said, “The whole purpose of business if you’re accumulating profits is to give it away, give the bloody stuff away… Do the best you can in the community… ” (52). That is the ideal mode of a corporation without any individualism and focusing on corporate social responsibility, such as human rights, the environment, social Justice, women’s rights”. (52) However, short- lived, when floated on the London Stock Exchange, the Body Shop had to overhaul its management under pressure from investors.

Along with the Cattle’s protest issue and the plummeting profits and declining share prices, the company failed to be secured. Meanwhile, Rowdier was diminished to consultant. It was more difficult than she imagined to integrate her personal values in her own company. The case shows that “how an executive’s moral concerns and altruistic desires must ultimately succumb to her corporation’s overriding goals”(53). As Aback points out, corporations often demand, which is that the harm negative individualism could do. On the other hand, employee is the life of corporations.

The formal General Director of General Motors Alfred M. Sloan said, “Take my assets – but leave me my organization and in five years I’ll have it all back. ” To a great extent, the employee is the precious wealth of corporations and the radical source of corporation’s core competition and core capability. However, individualism is stifling the employee’s thoughts and rights in many corporations. Paxar has three operating principles, which are all fought against individualism – “Everyone must have the freedom to communicate with anyone. It must be safe for everyone to offer ideas.

We must stay close to innovations happening in the academic community. “(71) The executives built a great collectivist peer culture and that is “Everyone is fully invested in helping everyone else turn out the best work. They really do feel that it’s all for one and one for all”(69). The success of Toy Story 2 was widely public understanding. However, in the period they worked on the film, creamers irked at an incredible rate and in an unimaginable situation. Everyone was working at the studio while shutting down all the other productions. As a result of Toy Story 2, it became deeply ingrained in our culture that everything we touch needs to be excellent”(68). They are striving to create an environment that supports great people and encourages them to support one another so the whole is far greater than the sum of the parts. Therefore, it is a victory for collectivism. They would make nothing if individualism existed in their team. As Cutout and Beseeches argued, a key idea in their essay is “Teams are often seen as fee places where people can be highly creative and productive.

However, research consistently shows that teams underperformed their great potential”(100). Teams do not work because of individualism sometimes. Great companies are always providing a supportive context for teams instead of pursuing of profit only, such as the human resource system, the information system and the reward system, with which to facilitate teamwork. In corporations, the managers are always educated to advocate collectivism, the opposite of individualism, which is meaningless. This phenomenon’s Eng-range existence has its special reasons.

The human nature of selfish in the economic society influences humanity behavior and thought. In addition, the negative individualists not only are good at performing but also they always disguise their defect. Even some of them are put in very important positions instead without the executive’s notice. Individualism can be and should be curbed and collectivism should be embraced in corporations. The goal of collectivism is group-oriented and long-term, whose relationship within groups or corporations is harmony required, which Just also is the mode that the corporation needs truly. Chris Commiserative, CEO of Burros-Marketed, believes “Corporate social responsibility is a mandate that companies have today. They don’t have any choice. “(Aback 144) What the society and the employee need, is the truly measures and action, not Just the superficial. The corporation’s responsibility to its employees refers very extensive scope. They should be responsible for conduct training and counseling and coaching for employees of the department. Meanwhile, they should be directly responsible for he employee’s safety and welfare.

For society, corporations should be responsible for the environmental protecting, social welfare supporting, and public service developing. First of all, in system, especially the benefit system, caring to the employee should be reflecting to satisfy the their physiological and psychological needs. On this basis, the enterprise can guide employees to reinforce motivating themselves and pursue self- value realization. Second, education to the manager should be launched periodic, which causes the true care are shown in the handling the superior-subordinate legislation.

Third, corporations should establish and develop a mechanism of a corporation’s performance evaluation by the executives, employees and customers, which could provide feedback to improve their internal management. Only we have the valid evaluative criteria, the individualism had nowhere to breed. Employees and society are important resources and fortune for business, are the core competitiveness of corporations and the basis of corporate development. Individualism can be main obstacle in the process of corporate development; therefore, it should be paid enough attention.