The Formula of Corporate Exploitation


They say that the nation is developing, and is progressing, but for whom? Who is getting the most benefit out of the nation’s progress, when we see that there are deaths due to starvations, when there are youth lying unemployed, when there are exploited labors, and when there are 50% below poverty. We should ask, who is getting the most benefits, where is the money being invested in, but we do not, still wherever it is invested in, but its for sure it is not invested in the benefit of the needed, its not invested in the upliftment of the poor, its not invested for those who really need it, because there are no results of the investment the Govt. does, as it says.

The gap between the poor and the riches is widening up, and its because the govt. is getting transformed from the socialist to the capitalist, and all together with a combined effort are trying to transform this land into an money making market. Many of us will say what’s wrong in that, if we can earn money why not to go with that. So in the effort to answer them:-

A business firm works like this
Invested Capital + Labor Cost = Investment (for n number of days)
Profit = Contract Cost paid by client – Investment (for n number of days)

*invested capital includes all the cost which is required for a specific business setup; including infrastructure cost, initial investment, publicity & promotion, and every other investment.
Suppose that this business firm get a contract, and they have to complete it in x number of days, so what really happens here, that the contract is provided to this firm because the firm is perfect to provide the required essentials for the contract, and now firm is minded to make money, as all business firms do. Contract provider seeks for a good infrastructure and a commitment to complete the project contract on time, they are not bothered how really the firm deals its workers, and they are lease concerned.

Let’s make money now:-
The time factor in business is a big factor, the contracts are provided to those who can complete them in little time with little cost, and both of these are the foundation of a perfect business, less time less cost.
So, what happens is that, the contract provider asks this company to complete a project in say ‘x’ days, and seeing at the intensity of the labor requirement the project, it needs ‘y’ men to work for ‘t’ hours (8 hours per day as per labor laws), and labor charges are ‘i’ rupees per hour to complete the project.
So the total labor investment is: T * I * Y * X = tiyx
And suppose that that there are some initial investments that the business firm needs to take out of the project cost, and let it be ‘p’. So the company must ideally work like this.
Total investment for the project = tiyx + p = Project cost to the business firm.
Cost the client is going to pay to the business firm, let it be “C”.

The Formula of Corporate Exploitation

So the profit of the business firm is
Profit = C – (tiyx + p).

Now as we can see that here cost for the project for the client is C, and it is constant, and the part of initial investment that the business firm needs to take out from every project is also constant i.e. P, so the only variable left here which is related to the labor cost (tiyx), so the business firm can decrease this variable to get more profit. Its because the less this tiyx is the more the profit increases, and this leads to exploitation of the labor, which in fact are we.

So in this case the maximum profit can be taken out by making the workers work for more hours (to compensate the lessened deadline), paying the labor less, hiring less number of workers, decreasing the deadline for the workers. And this is what corporate exploitation is.

Now how it really works, most of the people of this nation work in private organizations, which do not have any other motive rather than making money, and they work on the principle of “hire and fire”, that simple means that if you do not work according to the organization’s policy you are thrown out of the organization. The policies of the organization may include the following:-

1. Employees are not authorized to form organization or groups.
2. Employees will follow all the directions provided by the organization.
3. Employees will do overtime when it is asked to.
4. Employees are not allowed to discuss salary and other issues with other co employee.
5. Employees will provide some months notice period before resigning.
6. Employees will have to finish the work in the time slot.
7. Employees can not exceed their breaks.
8. Employees if can visit the doctor, they can come to office, no leaves in that case.
9. Employees are not granted leaves even if they do have a leave balance.
10. Employees can not discuss politics, government policies, labor laws and other similar things with others neither can participate in them.
11. Employees should feel home in office.
12. Employee’s services can be terminated at anytime, and they can be fired without any compensation, whenever the organization wants.
13. Employee of the organization should practice the soft skills.

Well these are the most common exploitation going in the corporate sector, we have not yet gone to the far areas of country where there are industries like mining, agriculture, small scale industries, there the exploitation of the uneducated and the poor is the worst then anywhere in the world.

— Ankit Panch

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Comments
6 Responses to “The Formula of Corporate Exploitation”
  1. mano says:

    hi friend,
    it was great to stop by your excellent and informative work.
    I wish if you have time to visit my site and tell me your opinion.
    Thanks and good luck.
    http://allinone5.blogspot.com

  2. palakmathur says:

    @ankitpanch. We were never a socialist country, but a pseudo-socialist one. I think the Capitalisms suits Democracy. We have an example of the USA which followed capitalist model and is now the pioneer of anything in the world – be it wars or anything.

  3. ankitpanch says:

    They were capitalist from beginning….why should we always walk on someone else’s footprints ???

  4. Ancenergoto says:

    Thanks for that. It’s really imformative read.
    I enjoy to read vicharvahak.wordpress.com.

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