Alchemy – making something from nothing?

Painting of an alchemist at work - source: http://teleskopos.wordpress.com

For every action there is an equal and opposite reaction. Alchemists sought to make lead into gold but found that nothing comes for free. Companies cutting costs, cutting corners, and streamlining production to cater to poorer majorities sounds almost too good to be true. But is it? Is it as simple as settling with a sustainable profit margin rather than a bloated one that will make investors pleased? I can’t help but wonder in reading about businesses pursuing more social enterprises if they are leveraging facilities that house both the human rights violations enabling low production costs and the workers in the price bracket they aim to sell to. Companies like Adidas, which is trying to develop a shoe that will sell for a single Euro. Rumors of sweatshop-like conditions for Adidas production are currently unconfirmed, but plausible given the track record of large clothing companies like Nike. 

Perhaps I am doomed to be a skeptic, but I find myself waiting for the catch. But for all of my skepticism, I believe that if businesses can really pull this off ethically and develop successful models for developing products to serve the bottom of the pyramid the flood gates are going to open in a very positive way. Already more businesses are trying to develop products in this high-risk-high-reward social space. Perhaps then my skepticism is misplaced and this really is the beginning of a trend that will be profitable for clever businesses and help lift the lower classes to a better state of living.