"The Case of Bill Gates"Is too much success unethical?

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The Case of Bill Gates

Is too much success morally unethical?

By Chuck Haling

MGMT 68 B

Professor Swartz

July 4, 00

If there is a fine line between being a successful American business entrepreneur and a monopolistic villain, Bill Gates could probably tell us where that line is. If you were to talk to Bill Gates he would most likely tell you that he has experienced the American dream, and then some, so why do so many people hate him because of it?

Bill Gates is not a stupid man, although he did drop out of college, his love for computers and his natural business sense has helped him to create one of the largest and most recognizable companies in the world. There are several ethically debatable issues surrounding the rise of Microsoft and how Bill Gates has gotten to where he is. One issue that has received the most press over the past few years has been whether or not Microsoft violated anti-trust laws by creating boundaries to prevent other companies from entering the market. When you look at the computer you can break the components down into a few categories, hardware, software or peripherals. You can further dissect software into two additional categories, the operating system and the other being application software such as word processing software, spreadsheet software and web browser software to name a few. Those who have attacked Microsoft claim that the company, through its bundling approach to selling software and that fact that they give away their web browser program with the purchase of the operating system, limits the opportunity for competitors to enter the market with a sellable product that can compete. Although I have some mixed opinions about this issue and can appreciate both sides of the argument, I keep coming back to a basic fact that if it weren't for people like Bill Gates and companies like Microsoft, technology like this may not even exist. Don't get me wrong, I don't think that other companies should just sit back and not try to compete with companies like Microsoft, but I do believe that they need to find ways to differentiate their products or prove to consumers that their products are of equal or better quality to those produced by Microsoft and then let the consumer make a decision based on the features and benefits rather than by trying to reduce Microsoft's edge and ability to do what it they do best, develop software solutions. Consumers benefit from the natural progression that takes place when new companies try to enter markets by introducing either a better product or a better value. If other competing companies feel limited in their ability to complete at an even level, then perhaps they should look at ways to increase the value they are bringing to the consumer. For Microsoft, they have done an outstanding job of integrating their products to work very well with one another. Rather than look at this as a means of locking out the competition we should appreciate the technology and their innovation.

Another heavily debated issue related to Microsoft surrounds the amount of money that one is allowed to make before society considers it to be too much. Through the growth of the company and his shares of stock in Microsoft, Bill Gates is now worth billions of dollars and is one of the richest men in the world. It is hard to even fathom this amount of money, but the fact that Mr. Gates earned it is something that is rather easy to comprehend. Some people feel that making the amount of money that Mr. Gates makes is morally wrong and that if one person can make this type of money while other people are in poverty, the system must not be working. Most of Bill Gates wealth does not come from his salary, but instead comes from his approximate 0% ownership of the companies stock. By taking the company public, Bill Gates increased the amount of capital needed to grow Microsoft, and he made the stock available to anyone who could afford it. So who is really at fault for the success and extreme wealth of Bill Gates and Microsoft? As a publicly traded company, we the people, the consumers, the stock holders are the one who set the prices and the value of Microsoft. Through basic supply and demand we purchase Microsoft products and determine the wealth of not only Bill Gates, but all the stock holders in the company. The nice thing about the American economic system is that people have choices. If people did not see value in the products that are produced by Microsoft, they would stop buying them, or the demand that would be created would be enough to bring new competitors to the market. The fact that there are a limited number of competitors tells us that there is little demand that is not being met by Microsoft, as it relates to computer software.

The wealth associated with Microsoft now goes far beyond Bill Gates. The number of millionaires associated with the Microsoft organization is more than any other company in United States. Compared to employees in other technology related companies, Microsoft employees may not earn as much in a standard salary, employees who have been with Microsoft since the beginning as well as new executive level employees are now millionaires simply based upon the shares of stock they hold in the company. Some people allege that non-millionaire employees at Microsoft are being taken advantage of when the company is making so much money and the employees are not directly compensated based accordingly. To this I say that each of these employees has the opportunity to purchase Microsoft's stock and if they felt exploited they could leave the company at any time. It is a shame that not everyone has this type of wealth and that other people live in poverty, but I don't think we can fault the successful, nor should we punish them for their success. If we judge these individuals we are tearing at the threads that make up our competitive market system and send the message that although hard work may pay off, it only pays off to a certain level. I would suspect that many of the wealthy associated with Bill Gates and Microsoft have in fact given quite a bit back to society in the form of donations and charitable events, but I think it is wrong for us to expect them to do any more than anyone else.

If building one of the most successful companies in the world and inventing some of the most advanced technology that will take place in our lifetime is a crime, than Bill Gates and Microsoft are guilty as charged. It is hard to not be overwhelmed and even a bit jealous of Bill Gates and what he has created; however, until it is proven otherwise, everything he has accomplished has come as a result of a lot of hard work and moral and ethical business decisions.

Works Cited

Warner, Margaret. The Innovation Question Online News Hours 8 June 000. 4 July 00 http//www.pbs.org/newshour/bb/cyberspace/jan-june00/innovation.html.

Economides, Nicholas. Microsoft Anti Trust Case Stern Business Stern School of Business, NYU. Spring/ Summer 000. 4 July 00. http//www.stern.nyu.edu/networks/sternbusiness.html

Wilcox, Joe. Final Arguments in Microsoft antitrust Trial CNET News.com. 1,

September 1. 4 July 00. http//news.com.com/100-1001-415.html?legacy=cnet&tag=st.ne.ron.lthd.100-00-11650

Bollow, Norbert. Business Ethics In The Face Of Monopolistic Threats DotGNU Project

4 July 00 http//www.dotgnu.org/ethics.html

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