The Friedman’s Doctrine
September 13, 1970 – Milton Friedman, a well respected economist and a Nobel prize winner, wrote in a New York Times article that states – the sole purpose of a corporation or enterprise is to turn profits for its shareholders. He further explained that business executives have direct responsibility to his employers (shareholders).
To quote: “That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of the society, both those embodied in law and those embodied in ethical custom.”
The article implied that business executives who redirect company funds for any general social interest would – to quote: “be spending someone else’s money… Insofar as his actions in accord with his ‘social responsibility’ reduce returns to stockholders, he is spending their money.”
Why we think this doctrine is wrong.
What’s wrong about this ideology is it that it puts shareholder value / profit on a high pedestal making it more important than anything else such as – well being of employees, genuine concern for customers, empowerment of external partners (suppliers), ethics, environment. The list on what a company / person goes on when money is the top priority.
Let’s be real. We all want to make or even maximize profit. We will not be hypocritical about this issue and tell you that we’re all about just empowerment, love, and integrity. Of course, we also want to make money! How we make our money –are we upholding our core values while making our money is the crucial question we ask ourselves on all of our dealings.
What we believe in
Apart from the core values that we uphold – empowerment, love and integrity. Our organization believes that to make a great impact in the world, we simply need to be human.
Here’s how Wikipedia defined Humanism: Humanism is a philosophical stance that emphasizes the value and agency of human beings, individually and collectively. Humanism refers to a perspective that affirms some notion of human freedom and progress. It views humanity as responsible for the promotion and development of individuals, espouses the equal and inherent dignity of all human beings, and emphasizes a concern for humans in relation to the world.
How does this relate to producing custom jackets and tees? We treat everyone as equal shareholders from employees, customers, external partners and the proprietors. In practice, the welfare of all shareholders are to be taken into account. In every decision made, all shareholders must benefit equitably.
ChampTailors, Community Champion
The 2020 pandemic has forced businesses to rethink how they conduct their operations. Being vertically integrated (doing end-to-end key processes in-house) may not be an optimal thing to do during these uncertain times.
ChampTailors Corporation decided to direct its energies to top value processes such as product research and development, product design, supply chain management and sales and support. All custom jackets, tees, and other custom goods that we supply are produced by our adopted community tailors who exclusively sew for ChampTailors Corporation.
Our Champion Tailors are sewers who have at least a decade long of experience in the industry. Most of them have been recently let go by export manufacturing garment firms that either down sized or closed down.
Before any engagement, the ChampTailors Supply Chain Team conducts a brief assessment and background check on the community’s team leader and key personnel. This may include site visitation, interviews, and reference audit. The goal of this process is not only to know information about the community but also to see if the values of both groups are aligned.
After screening, a small batch of test orders from the ChampTailors’ R&D team will be placed and evaluated. This process aims to determine the level of quality and craftsmanship of the community. More than this, timeliness and attention to detail will be evaluated.
After passing the testing phase, financing for equipment will be discussed with the community leaders. This process aims to properly equip our tailors.
This is where the magic happens. We introduce technology and new global manufacturing practices to the community which they can apply to produce better export quality products.
On a monthly basis, every community is evaluated based on the quality and timeliness of their work. These quantitative and qualitative evaluations are shared with the community leaders to further elevate not only the output but also the partnership.