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,...