We’re Here to Make Money

In the business world, the rearview mirror is always clearer than the windshield.

Warren Buffett

In the early 20th century, British explorer Robert Falcon Scott led an ambitious expedition to be the first to reach the South Pole, driven by a fierce determination to achieve glory for his country. Despite the harsh Antarctic conditions, Scott and his team embarked on their journey with inadequate preparation and supplies.

Before his appointment as director of the Discovery Expedition, Scott had followed a conventional career as a peacetime naval officer in Victorian England, where opportunities for promotion were limited and ambitious officers sought any chance to distinguish themselves. Becoming the head of the expedition allowed Scott to build an outstanding career despite having no particular passion for polar exploration. This step inextricably linked his name with Antarctica, to which he remained devoted for the last twelve years of his life.

On January 17, 1912, Scott and four other expedition members reached the South Pole, only to discover that the Norwegian expedition of Roald Amundsen had beaten them by several weeks (!).

Their single-minded focus on reaching the Pole overshadowed the essential spirit of exploration and contribution to human knowledge. As they battled severe weather, extreme cold, and exhaustion, their lack of preparation became glaringly apparent. Tragically, Scott and his comrades perished on their return journey from cold, hunger, and physical exhaustion, turning their quest for greatness into a stark reminder of how unchecked ambition, when it eclipses core values and safety, can lead to disastrous consequences.

*****

There is little doubt that the main ambition of the modern business world focuses on a single word: “Money.” The story of Scott’s expedition could serve as a powerful metaphor for the relentless pursuit of profit, where the prioritization of revenue over deeply sustainable values, like innovation, safety, quality, and even climate change, can result in severe long-term repercussions.

As I already mentioned previously, unfortunately, this tendency is evident: even the most innovative companies sometimes choose to focus on revenue at the expense of creating value.

Don’t believe me? Let’s take a look at several bold examples:

Boeing: Prioritizing Revenue Over Safety

Boeing, one of the giants of the aviation industry, found itself in a turbulent storm due to its focus on revenue. The development and rushed deployment of the 737 MAX aircraft, aimed at competing with Airbus and maintaining market dominance, turned into a nightmare. The aircraft was involved in two tragic crashes, resulting in the loss of 346 lives. Investigations revealed that Boeing had compromised on safety to speed up production and reduce costs, overshadowing the importance of thorough testing and pilot training.

The fallout was severe: billions in losses, grounded planes, and a tarnished reputation. This stark example underscores the perils of putting profits before people. While Boeing might have initially succeeded in generating revenue, the long-term repercussions were disastrous.

However, Boeing wasn’t always the embodiment of prioritizing revenue over safety. This shift began with its acquisition of McDonnell Douglas in 1997, a merger that infused Boeing with a new, profit-centric culture. McDonnell Douglas brought a revenue-oriented mindset that gradually overshadowed Boeing’s traditional engineering-driven focus.

Starbucks: The Personal Touch Over Impersonal Online Sales

Starbucks has built its brand on the experience of personalized service. The friendly barista who knows your name and order, the cozy atmosphere of the cafes, and the sense of community – these elements are core to Starbucks' identity. Nowadays, it seems that Starbucks is influenced by the era when many businesses are pivoting to low-quality, impersonal online sales.

During the COVID-19 pandemic, Starbucks, like many competitors, rushed to bolster its online presence, pivoting away from its core personalized service. The company's focus shifted towards enhancing its digital platforms and promoting mobile orders, sidelining the in-store experience that once defined its brand.

This strategy aimed at capturing the booming online market, but it came at the cost of the human touch and personalized service. By prioritizing convenience and digital engagement, Starbucks is risking diluting its unique market position and brand loyalty that was built on face-to-face interactions and a community feel.

Tesla: Innovate Now, Fix Later

Tesla, under the leadership of Elon Musk, exemplifies the dangers of prioritizing sales over safety and quality. The company's rapid innovation cycle is driven by a "sell as many cars as possible" mentality, often at the expense of thorough safety checks and quality control. Tesla has faced numerous criticisms and legal challenges over its autopilot feature, with accusations of overpromising its capabilities and underdelivering on safety.

This aggressive push for market penetration, while making Tesla a leader in the electric vehicle market and boosting its stock value, has come at a significant cost. The emphasis on high sales volumes over meticulous improvements in safety and quality reveals a risky and potentially dangerous approach. Tesla’s strategy highlights the perils of prioritizing market disruption and rapid growth over the fundamental responsibility of ensuring the safety and reliability of its products.

Facebook: Engagement Worth Everything  

Facebook, the social media giant, has often been criticized for prioritizing growth over user privacy. The Cambridge Analytica scandal revealed how the company’s data practices allowed third parties to harvest personal information from millions of users without their consent, influencing political campaigns and undermining public trust.

In addition, Frances Haugen, a former Facebook product manager, has repeatedly highlighted how Facebook's algorithms prioritize engagement over user safety, contributing to the spread of misinformation, hate speech, and even inciting violence in certain regions​ 

Despite facing massive fines and a significant backlash, Facebook’s focus on maximizing user engagement and advertising revenue has continued. This strategy has undoubtedly driven growth and profits but at the cost of user trust and increased regulatory scrutiny. Facebook’s journey serves as a powerful example of how prioritizing rapid expansion and revenue can lead to significant ethical and legal challenges.

Uber: Expansion Over Regulation

Uber's aggressive global expansion strategy often involved bypassing local regulations and entering markets without proper licensing. This "ask for forgiveness, not permission" approach helped Uber quickly establish a presence in cities worldwide, challenging traditional taxi services and becoming a dominant player in the ride-hailing industry.

However, this strategy also led to numerous legal battles, protests from taxi unions, and a reputation for corporate arrogance. Uber’s initial focus on rapid market penetration over regulatory compliance resulted in hefty fines, banned operations in several regions, and a need for extensive public relations efforts to repair its image. Uber's experience highlights the perils of prioritizing expansion at the expense of adhering to local laws and norms.

Crypto Mining: F@ck the Planet

Cryptocurrency mining, especially Bitcoin, exemplifies how the relentless pursuit of profit exacerbates climate change. Bitcoin mining is notoriously energy-intensive, primarily due to its reliance on the "proof of work" system, which requires vast computational power and, thus, substantial electricity consumption.

This process contributes to an estimated 22 to 22.9 million metric tons of CO2 emissions annually, equivalent to the energy use of 2.6 to 2.7 billion homes in a year. One study has warned that Bitcoin's energy consumption could push global temperatures beyond the critical 2°C threshold. Additionally, projections estimate that Bitcoin mining in China alone could generate 130 million metric tons of CO2 emissions by 2024.  

Moreover, following their expulsion from China and Europe, many cryptocurrency mining operations, including those of major Bitcoin mining companies like Bitmain and Marathon Digital Holdings, have relocated to the U.S. These operations often revive dormant fossil fuel power plants, exacerbating greenhouse gas emissions​​.

The environmental toll extends beyond carbon emissions, encompassing substantial water usage, land degradation, and e-waste from obsolete mining hardware. This environmental degradation starkly contrasts the substantial profits garnered by a small fraction of the global population, highlighting the inequities and long-term environmental consequences of unregulated digital currency sectors.

To Sum Up…

These stories paint a picture of a provocative reality in the business world: the trade-off between making fast money and potentially losing it all. Companies that prioritize short-term revenue gains can achieve rapid success but risk severe long-term consequences if they neglect safety, quality, or customer trust.

In the end, the interplay between making money and losing the market is a complex, high-stakes game. Businesses must carefully weigh their priorities, understanding that while the pursuit of profit is essential, it should never come at the cost of fundamental values like safety, sustainability, quality, and customer trust. The balance between these elements is delicate, and tipping the scale too far in one direction can lead to either unprecedented success or devastating failure.

So, are we here to make money and lose? Or is there a middle ground where profits and principles can coexist? The answer, perhaps, lies in the wisdom to navigate this tightrope with foresight and responsibility.