Saturday, September 27, 2014

Unforgiveable Sins, Part I: Corporate Transgressions

Any corporation will make mistakes, some big, bad or especially galling ones. When they do, they deserve to suffer, in proportion to their offense, both through immediate financial impact, and reputation. This is important for society, because corporations are basically amoral. Within the very wide latitude of what is permitted by law, the Pavlovian reward-punishment of the marketplace is the only reliable check on corporate behavior. This is not a bad thing, it just is the nature of a for-profit corporation (and applies much of the time to not-for-profits as well--more on that in Part II).

Yes, corporations may claim to have fixed ethics and ideals, but over the long-term, those are quite changeable. They are a blend of how the corporation has traditionally acted, what the individuals who make up the organization believe, and what the corporate can get away with. The latter being the biggest factor, especially in the long-term. So the only real constraint on non-illegal corporate behavior is the opinion of the marketplace.

By the same token, just as all humans are flawed and will transgress, the same goes for organizations. It is unrealistic to think any organization can ever be without sin--especially when definition of "sin" will vary from consumer to consumer.

So while it is good and righteous when consumers and public opinion punish an organization that has done immoral/bad/harmful/unethical things, most of the time, punishment should be tempered by realism. Forgiveness can be extended based on a direct redress of the offense, of course (backtracking and refunding customers who purchased a lousy product, for example). It can also be extended based on the passage of time. Just like a prisoner is released from prison after they have "paid their debt" to society, so it may be that after buying a lousy product, and avoiding a corporation for half a decade, it is time for the consumer to give them another chance.

However, some organizational sins are so severe they can't be forgiven for a generation. Not until (and unless) the corporation has had a complete turnover in its "DNA".

I used to be a "fan" of Micro$osft (I didn't spell it with the $ back then). The company has done many, many things to lose my good favor. But two standout out as unforgivable. Both are sins of omission.

First is neglect and stagnation of the browser, once they achieved monopoly position. As much as we hate IE today, at least it has plenty of credible competition, to spur it on. Think how bad IE was when it had a near-absolute monopoly in the market.

Second is neglect of security. Even though they were the de facto platform vendor of effectively all consumer computing, M$ simply did not give a s*** about security. Didn't fit their strategic plan, didn't help their bottom line, traditionally an area filled by niche vendors, so they couldn't be bothered. And millions of consumers--consumers who were Micro$osft's customers--suffered substantially for it.

For these reasons, it is difficult for me to think well of any product Microsoft offers. Even ones that get very good press in the marketplace. I simply can't trust them.

(Ditching the bombastic, sales-myopic Steve Ballmer may prove, 20 years from now, to have been Microsoft's first step toward corporate redemption.)

No comments:

Post a Comment