In the 1920s, many large American corporations began, on a wide scale, to establish pension funds, employees’ stock ownership, life insurance schemes, unemployment compensation funds, limitations on working hours, and high wages. They built houses, churches, schools and libraries, provided medical and legal services, and gave money to charities. Since this is fairly surprising behavior for business corporations, there must be a good explanation. And I guess we have it.

First of all I’d like to mention that such words as “ethic” or “culture” used to be considered as having less in common with business. But it’s not so. Nowadays the positive image of an entrepreneur is essential part of any businessman, necessary for success in business.  And hopefully this image isn’t just showing-off.

Business and moral values are connected much closer than it might seem at first sight. Business undertakings include dealing with people, creating different contacts, and as you know contacts with people are usually built upon the basis of trust. You don’t need to cheat to get profit. It is usually the result of situation when market price exceeds expenditures.

Though many examples of concluding a bargain on parole testify to the fact that promise given by the person you trust sometime more valued than money given by somebody else.

Cheating, compromises with one’s conscience are witnesses of immaturity of market relations, ignorance of businessmen. It seems to be quite logical, but many people running their own businesses forget about this elementary truism – unfair business has no future. Once betrayed, a person won’t trust you or even start to play this game himself.

So to make a conclusion of the all above mentioned I’d rather say that a company, any business has responsibilities to its suppliers, its customers, its employees, the local community and society in general as well as to its shareholders. It will provide profit in the way of fair bargains with partners, loyalty of workers, better environment, etc. Consequently large corporations introduced ‘welfare capitalism’ as a way of creating favorable public opinion. Even rational capitalists, starting with Henry Ford, realized that a better paid work force would be more loyal, and would be able to buy more goods and services, and that a better educated work force would be more efficient one.

Of course, pure free market theorists disapprove of welfare capitalism and all actions inspired by ‘social responsibility’ rather than the attempt to maximize profit. Since the benefits of such initiatives are not visible, Milton Friedman criticized them for being unbisinesslike and for threatening the survival not only of individual corporations but also the general vitality of capitalism. In newspaper article titled ‘The social responsibility of business is to increase its profits’ he argued that responsibility of any company is to conduct the business in accordance with their desires, which generally will be to make as much money as possible, while of course conforming to the basic rules of the society, both those embodied in laws and those embodied in ethical custom.

Thus executives should not make expenditures on reducing pollution beyond the mount that is required by law or that is in the best interest of the firm. Nor should they deliberately hire less-qualified, long-term unemployed workers, or workers from ethnic minorities suffering from discrimination. To do is to be guilty of spending the stockholders’ (or the customers’ or the employees’, whatever) money. Friedman does not consider the possibility that stockholders might prefer to receive lower dividends but live in a society with less pollution or less unemployment and fewer social problems.

An alternative view to the stockholder model exemplified by Friedman’s article is a stakeholder model, outlined, for example, in John Kenneth Galbraith’s book, The New Industrial State.  According to this approach, business managers have responsibilities to all the groups of people with a stake in or an interest in or a claim on the firm. A firm which is managed for the benefits of all its shareholders, will not, for example, pollute the area around its factories, or close down a factory employing several hundred people in a small town with no other significant employers, and relocate production elsewhere in order to make small financial savings. Proponents of the stakeholder approach suggest that suppliers, customers, employees and member of the local community should be strongly represented on a company’s board of directors.

Another aspect of business ethic I’d like to cover concerns the difference between legitimacy of some actions and their relevance, conformation to the basic rules of society. Sometimes some actions we do are wide-spread but it does not mean they are legal. For instance industrial espionage or bribing corrupt officials, telling only half the truth in advertisements and keeping quiet about bad aspects of a product. Lobbing, I mean trying to persuade politicians to pass laws favorable to your particular industry, is legal, but can be condemned by public opinion. So it’s rather difficult to choose what rules to follow – laws, business practice, own conscience…

http://homework-expert.net

 

 

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Article – One Farmers Insurance Agents Experience Working for Farmers.

Copyright 2008 by Mr. Pickles

All rights reserved, including the right of reproduction in whole or in part in any form.

Right now you are debating whether to start a career with Farmers Insurance. You are so excited at the thought of owning your own business. What a wonderful opportunity. How can you start up your own business in America for almost no money? Your District Manager has told you and shown you that there is no better opportunity in America than a Farmers Insurance Agency to develop your own small business. And they will pay you a subsidy of up to $1,500 per month for expenses. What an amazing deal!

Please keep an open mind, and read for yourself what a former Agent of two years has to say about Farmers. At the end of this article I have links to documentation showing that I exceeded my quotas, was a hard working, successful Agent, and still ended up being let go from Farmers Insurance.

The Farmers group of company’s are actually a pyramid scheme, or Ponzi scheme, where only the District Managers and the heads of the company make money, the Agents just get knocked down, and I’ll explain to you how this happens.

Of course, their are a few Agents in each District that are successful and are making the six figures that your District Manager is promising that you will make, but these agents are only ‘show pieces’. Nine out of ten Agents work 18 hour days, sign up their network of friends and family, cold call for new business, then are eventually rooted out, having their clients that they brought to Farmers given to those few successful ‘show piece’ Agents, and the rest to the company itself (the District Managers). This is so the company does not have to pay the commissions to the Agents. This way the Farmers Company makes more money.

I’m sure your District Manager has told you, “after the first year, you’ll earn between $35-$50k, then it doubles after that, and then you’ll hit six figures after two or three years. After two or three years, you’ll be earning six figures, or close to it on renewals alone.” Please listen to me when I say that this is complete B.S.

Farmer’s requires that in order for you to convert from a ‘reserve agent’ to a ‘career agent’ that you sign up 30 or 40 clients (depending on your contract). These 30 or 40 clients are typically your friends and family, because they are the easiest people to persuade to sign up. Then once you turn to a career agent, you are told that the World can be yours. This is where the pyramid scheme begins.

For me, within three months, I had converted to a career agent and was doing great. I had brought in over $125,000 in New Business Premium to Farmers. Within’ six months I had brought in over $225,000 in NBP. I put 75 hours per week into my agency, and at the suggestion of my District Manager, I poured my life savings into my agency. The District Manager said that for every dollar I spent on marketing, I would get two dollars back with the Return On the Investment that I would be getting. Needless to say that this ROI was not true, and now I am broke and on the brink of declaring bankruptcy.

Just see how your District Manager reacts when you ask them about the ‘running to daylight numbers’ that you have to make. This quota is virtually impossible to hit, and if you don’t hit it, you owe back all of the subsidy that Farmers gave you! Farmers is a pyramid scheme because they get the business of your 30 or 40 friends and family that you signed up, then slowly squeeze the life out of you until you end up broke and have to pay them back.

I’m not just some dead beat who couldn’t hack it. As I stated previously, I have documented, proven track record of my sales. Farmers sets their agents up to fail. This way they make more money, because they don’t have to pay commission to the Agent. The only ones who get rich are the District Managers and the executives in the company such as Tom Hopkins.

Don’t walk away from becoming a Farmers Insurance Agent, RUN AWAY AS FAST AS YOU CAN. I swear in the end you will make more money flipping burgers at McDonalds.

I spent $2,000 per month on advertising at the suggestion of my District Manager, I hit my sales quotas and now I’m in debt to Farmers for over $6,000, and I brought in over a $250,000 in premium to them. In the end, I spent over $18,000 on trying to grow my agency, and now I owe Farmers $6,000! I think you would agree that this is not a ‘wonderful’ opportunity.

If you don’t believe me, click on this link below, and read testimonies of the thousands of former & current Farmers agents. This link connects you to the United Farmers Agents Association. Look around this forum. You’ll see what I’m talking about. Save yourself, your relationship with your family and your sanity and don’t join Farmers Insurance.

Here is the link to the United Farmers Agents Association. http://www.ufaa.com/phorum/read.php?1,1685

Here is the link to documentation that shows that did in fact hit my quotas and actually won a few awards for the amount of production that I brought in.

Http://www.farmerssacramento.com

If you would like to read further, please purchase my book about how my debt, family problems due to the amount of time and energy I put into my agency, and the loss of my agency has lead me to thoughts of suicide. This book is NOT just for Insurance Agents. This book will help any small business owner who’s business has failed. You can find my book here:

It will be published within the next few months. It will cost $9.99 and $14.99. I am not sure yet on a set price. Please leave me a message on Articlebase, or email me at nibnub@gmail.com to pre-order your book. Thank you for your support. You will find comfort in this book, and this book will console you and be your support group that you can turn to each and every day.

 

As a former Farmers Insurance agent in California, I have since left the insurance business. I met my quotas and was still let go by Farmers Insurance. Please read my story, and you will find links to many other scorn agents.
My hope is that you will obtain the knowledge I learned Farmers after working from the inside, as an Agent for Farmers Insurance, and you will learn how Farmers Insurance really treats their agents. If you are thinking about becoming an agent, and have not already made choice of becoming an agent, my Article on Farmers Insurance is a must read.
At the end of my Article, if you happen to be in the same position I find myself after pouring my heart, soul and entire savings into a failed small business; broke, in debt, family troubles and thoughts of suicide due to severe depression, I hope you will purchase my book of suicide letters.
You can find the link to purchase my book at the end of the article.