Friday, June 24, 2011

Government Intervention or force capitalism?

Mydin to create 1Malaysia shops? Is this nepotism? Too much government intervention. Not knowing the details, I would like to think that the idea is a positive one. Its a great idea to counter the effects of unscrupulous retailers taking advantage of the rising oil prices. Some say too much government involvement is a move to be feared since it's moving towards the socialism ideology. However, I doubt the governments main goal is trying to model a socialist country. As if Malaysia is not already the Big Brother trying to be corporate Malaysia. I would see it more like creating a large corporation with a huge social responsibility. A responsibility to help people. It just so happened that Mydin is one of the first to step up for this role. This bold move to take social responsibility will give Mydin the advantage of being the first in the market to do this. A lot of companies who decides to be more socially responsible tend to excel in the long run. Take for example Walmart, they take pride in helping consumers to get the best prices in the market. In the past, health companies like Pfizer have taken the philanthropic route to provide free medicine to victims, and it gained them trust in many governments to do business. Ford too have taken a social responsibility in the past to provide affordable cars for the common folks who were once only affordable to nobles and the rich. There are many more examples that shows, companies who thinks along the lines of "more than just making profit" can bring a company far. I'm not just saying it, but you can refer to the research done by Collins's et. al. (a bunch of Harvard grad students) in a book called, Built to Last: Successful Habits of Visionary Companies. Visionary companies that is built with "more than just profit ideology" tend to be very resilient and capable of withstanding major economic downturns. What the government have done here is to force capitalism. The more options consumers have the better for everybody. This is far from socialism or communism. I hope however that the government is not stopping any other tom dick and harry to start their own initiative to help the people by providing more options and cheaper prices. If they are, this is not in the spirit of 1Malaysia. Its about time for Malaysian corporations to think about their social responsibilities for Malaysia and the world.

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