Amazon, Berkshire Hathaway and JPMorgan Chase announced a partnership to cut costs and improve services for employees.
The objective is to create a company that would be “free from profit-making incentives.” The news of the deal rocked the industry including Express Scripts, Cigna, CVS, United Health and Aetna.
The idea of the partnership is to cut health-care costs and improve services for their U. S. Employees. The three companies together employ more than 1.1 million people and will launch a business model that is intended to be free from profit-making incentives.
The company’s immediate goal apparently includes a technology based solutions that would simplify the health-care system.
In my book, The Billion Dollar Byte, I talk about the need for ‘Good Profit’ in the digital age. This new deal involving three well respected companies is an encouraging sign to see. And this is exciting!
All businesses exist to turn a profit. Profit is fundamental to any business.
Without profit, no business can succeed. Without successful
businesses, no one succeeds. Our modern economy hinges upon the
success of the companies that comprise it. Profit is good. No doubt about this.
However, not all profits are good. Profit is only good when it improves people’s lives and makes the world a better place. Illegal narcotics cartels make huge profits. According to International Business Times, the United States’ illegal-narcotics industry grosses between $400 billion and $500 billion annually, perhaps as much as $750 billion. The global markets are even larger. Furthermore, the illegal-narcotics industry enjoys huge profit margins. They are making a killing in profit, but they do so by literally killing people and selling dangerous products that put their customers’ health at risk. They make this huge profit by meeting a real market demand, but in doing so, they make the world a worse place for everyone. This is bad profit.
Companies should strive for what businessman Charles Koch calls “good profit.” What Jeff Bezos, Jamie Dimon and Warren Buffet at doing is quite encouraging. Especially, considering what the digital age could be when business become radically transparent and serve people in the eco-system.
There is no doubt that this is very early stage and it would be unrealistic to expect a “perfect” outcome, but the intention and people involved are enough to create a conscious effort in laying the foundations for a better world, in the digital age.