One reason why large companies support communism
Many people are confused as to why large companies support socialist causes. It seems like a contradiction the Capitalist corporation supporting the causes of the side which wishes to do away with capitalist enterprise. However there is some nuance which explains the seemingly contradictory statement
1: Large companies are often publicly traded. This means that the majority of the ownership of the companies exists outside of the company.
2. The board of directors for publicly traded companies are constituted from the largest shareholders. The board of directors in turn appoints the CEO and has a strong hand in setting corporate policies.
3. Hedge funds and investment firms make up the majority of of the largest shareholders for most publicly traded large companies.
Therefore from these three axioms we see that large corporations have become controlled by a (((financial elite))). Thus we may deduce that the support of communism by these corporations comes by way of this control mechanism since it is at such variance with sound business practices it must be approved by the those who run the corporation.
For instance:
The growing influence of these firms is directly tied to the rise of passive investing. Over the last decade, more investors have been choosing passive funds, which track broad market indexes, instead of trying to pick individual stocks. Today, roughly 24% of the S&P 500 is owned by passive funds, up from just 7% a decade ago.1. Naturally, Vanguard, Blackrock, and State Street hold significant stakes in these companies because they manage some of the largest index funds.
Voting Power and Concerns
While these firms don’t directly control the companies they invest in, they do have considerable voting power. Through proxy voting, Vanguard, Blackrock, and State Street make decisions on behalf of their fund investors during corporate elections, such as voting on board members or executive compensation.
This concentration of voting power can raise some concerns. A relatively small group of people at these firms are making decisions on behalf of millions of shareholders. While they aren’t running the companies directly, this voting power gives them a level of influence over corporate governance that deserves attention.
Do Vanguard, Black Rock, and State Street Run the World? By Johnathan Ferris https://www.flagshipfinancialtn.com/blog/do-vanguard-blackrock-and-state-street-run-the-world
What gets missed is that the rise in hedge funds has occurred in large part due to 401K's. A 401K requires you to invest into a hedge fund. Which seems odd since it is a program designed to give tax breaks so that you invest your money for retirement. Especially odd since hedge funds always underperform the S&P 500 index. See Warren Buffets Challenge here: https://www.investopedia.com/warren-buffett-usd1-million-bet-8779290
But when you really think about it what is the 401K if not a government program to put money into the hands of hedge fund managers? And that friends is not the free-market.