When Corporations Use Social Causes as Cover for Cutting Costs
My absolute favorite example of corporations using social causes as cover for cost-cutting is in hotels. You have probably seen it -- the little cards in the bathroom that say that you can help save the world by reusing your towels. This is freaking brilliant marketing. It looks all environmental and stuff, but in fact they are just asking your permission to save money by not doing laundry.
However, we may have a new contender for my favorite example of this. Via Instapundit, Reddit CEO Ellen Pao is banning salary negotiations to help women, or something:
Men negotiate harder than women do and sometimes women get penalized when they do negotiate,â she said. âSo as part of our recruiting process we donât negotiate with candidates. We come up with an offer that we think is fair. If you want more equity, weâll let you swap a little bit of your cash salary for equity, but we arenât going to reward people who are better negotiators with more compensation.â
Like the towels in hotels are not washed to save the world, this is marketed as fairness to women, but note in fact that women don't actually get anything. What the company gets is an excuse to make their salaries take-it-or-leave-it offers and helps the company draw the line against expensive negotiation that might increase their payroll costs.
Postscript: Yes, I understand the theory of negotiation and price discrimination, as used by auto dealers. One can make an argument that setting prices high (or wages low) and then allowing negotiation by the most wage or price sensitive is the best way to optimize profits, and that Pao's plan in the long-term may actually raise their total compensation costs for the same quality people. I don't think she is thinking that far ahead.