10/19

   Today we watched a documentary about corporates. The difference between a company and a corporate is that a company is owned by a private person or a group of few people, and employees do business for their purposes (usually making profit but sometimes protecting the environment or improving the society is the top priority). However, when a companies' stocks are listed on the stock market, the company becomes a corporate, and its sole purpose becomes to make profits for the stockholders. Protecting the environment becomes the second priority, so corporates tend to pollute the environment. This is called externality and in economics, it means costs caused by a third party economic agent. 

  What was shocking is that the corporations were exploiting children in developing countries. They are paid only a few cents when the clothes they are making are sold for more than a hundred dollars. Moreover, there was a tag on the clothes that the corporations sold that said, a part of the profit will be used to help unfortunate children. If they care about the unfortunate people, why don't they raise the workers' wages! The corporations are using people's goodwill to make money and that is outrageous.