VW’s existential crisis has revealed the weaknesses inherent in western economies. Change must now happenA well-functioning capitalism has,and will always need, multiple and powerfully embedded checks and balances – not just on its conduct but on how it defines its purpose. Sometimes those checks are strong, or uncompromised unions; sometimes tough regulation; sometimes rigorous external shareholders; sometimes independent non-executive directors and sometimes demanding,empowered consumers. Or a combination of all of the above.
CEOs, company boards and their cheerleaders in a culture which so uncritically wants to be pro-business accomplish not welcome any of this: checks and balances accumulate in the way of wealth generation”. They are dismissed as the work of liberal interferers and apostles of the nanny state.
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Source: theguardian.com