Good Corporations Benefit ALL Stakeholders

I have just completed a summer program at Yale University. At the Yale Young Global Scholars' Politics, Law, and Economics session, I had several discussions about the role of corporations in society. A number of individuals expressed strong views against corporations, and the profit motive. A common sentiment was that in order to seek profits for shareholders, corporations must abuse their workers' rights, and the environment they operate in.

Unfortunately, it is true that some corporations do mistreat their workers and their environment. However, I believe it is wrong to think that this benefits shareholders. Mistreating workers leads to dissatisfaction, poor customer service, and high worker turnover. Similarly, a company which destroys the local environment may face backlash from workers and customers in the community.  Over time, dissatisfaction and backlash kill a company.

Thus, seeking sustainable, long-term profits for shareholders and caring for other stakeholders aren't mutually exclusive - to me, the two are synonymous.