Engines of Growth or Scourges on Society? Assessing the Influence of Big Business on Labor, Consumers, and Third Parties

Highly successful companies are often vilified for their pursuit of profit, which is perceived to come at the expense of the people. Yet those who build highly successful companies are also routinely praised as visionaries who create jobs and improve the quality of life for consumers through their innovative products. So which is it? Are large and successful businesses engines of growth or scourges on society? This paper explores that question by assessing the impact of big business on three specific stakeholders: labor, consumers, and third parties. It concludes that the impact on all stakeholders is mixed. At their best, large and successful businesses provide lucrative jobs for their employees, create valued goods and services for consumers, and use the fortunes amassed to advance philanthropic causes. Yet these benefits may be overshadowed by more serious harms. Highly successful businesses can use their dominance to exploit employees. They can also suppress competition, allowing them to charge higher prices for inferior products. They can even exacerbate problems like climate change by failing to consider the externalities of their operations and erode the foundations of democracy through their disproportionate social and political influence. However, this paper underscores that such harms are not inevitable. Carefully crafted and actively enforced government regulations can play a central role in reining in the worst effects of big business while amplifying their positive impact.