Do You Know What $54B Signifies?

Here are a few numbers...

$54 Billion...

$2,150...

The first big number with a B was the amount of money US Airlines received from American taxpayers under the CARES Act (Coronavirus Aid, Relief, and Economic Security Act), passed in March 2020, and subsequent relief packages.

The second number was the ticket price for Americans trying to escape the path of Hurricane Milton down in Florida. A picture on X went viral after one person trying to escape tried to highlight that United Airlines was price gouging passengers during a crisis.

United Airlines and other US carriers have since come out with statements that they are not price gouging, but news of price gouging has already spread to sources such as Forbes .

You might be wondering...how are they allowed to do this?

The answer is that airlines are generally not allowed to engage in price gouging, especially during emergencies or times of crisis. While price gouging laws can vary by state and industry, the airline industry is subject to federal regulation, and the following factors contribute to the prohibition of unfair pricing practices:

1. Department of Transportation (DOT) Oversight:

The U.S. Department of Transportation (DOT) has the authority to investigate complaints related to unfair and deceptive practices by airlines, including excessive pricing during emergencies. While the DOT does not set prices for airlines, it can step in if airlines engage in practices deemed to be unfair.

2. State Price Gouging Laws:

Price gouging laws in many states prevent businesses, including airlines, from dramatically raising prices during emergencies (e.g., natural disasters or the COVID-19 pandemic). These laws are typically triggered when a state of emergency is declared, and they often apply to essential services and products, including transportation.

3. Market Competition:

Airlines operate in a competitive market, and airfare prices are typically determined by supply and demand. While prices may fluctuate, especially during peak travel times, the competition among airlines generally helps to prevent excessive pricing.

4. Pandemic-Related Concerns:

During the COVID-19 pandemic and now during Hurricane season, there were instances where consumers raised concerns about increased prices for flights. While prices may have risen due to reduced capacity and increased demand for certain routes, authorities discouraged and monitored any potential for exploitative pricing.

So what can be done?

In extreme cases, if an airline is found to be unfairly exploiting a crisis, it could face fines, lawsuits, or other regulatory penalties. While airlines are allowed to adjust prices based on market conditions, they cannot engage in predatory or unethical pricing practices that would be classified as price gouging.

But what about other companies?

Airlines are not the only American companies in a gray area of what are standard price increases vs price gouging.

Take for instance this Reddit Thread that highlights all the inflationary prices going on in our grocery stores...

Why is this occurring?

Greed!

My plea...

Here goes my plea to all those companies out there that are engaging in corporate greed.

In the race for profitability, many companies fall into the trap of focusing on short-term gains, often at the expense of their employees, customers, and the broader community. While the pursuit of profit is a fundamental goal of any business, corporate greed—defined as the excessive focus on maximizing profits without considering the well-being of others—can have far-reaching negative consequences. Companies that embrace more ethical, long-term approaches not only benefit society but also position themselves for sustained success. Here’s why corporations should avoid greed and instead focus on sustainable, responsible business practices.

1. Building Trust and Customer Loyalty

Corporate greed often results in practices that harm customers, such as inflated prices, reduced quality, or deceptive marketing. These strategies may lead to short-term profits, but they undermine customer trust and loyalty in the long run. Consumers today are more informed and connected than ever before, and they are increasingly choosing to support companies that align with their values.

Ethical companies that prioritize transparency, fairness, and customer satisfaction build stronger relationships with their audience. These companies often enjoy higher customer retention rates and benefit from word-of-mouth referrals, which can be invaluable for brand reputation. In contrast, companies that are seen as greedy or exploitative risk alienating their customer base, facing backlash, and ultimately losing market share.

2. Fostering Employee Engagement and Retention

A company's success is directly tied to the engagement and satisfaction of its employees. Greedy companies that focus solely on profits often neglect the needs of their workforce, leading to low morale, high turnover, and reduced productivity. Offering fair wages, benefits, and opportunities for growth not only improves employee satisfaction but also enhances a company’s overall performance.

Employees want to work for organizations that share their values and treat them with respect. A company that invests in its people, promotes work-life balance, and fosters a positive workplace culture will attract and retain top talent. In contrast, a greedy company that prioritizes cost-cutting and profit maximization over employee well-being may struggle with turnover and the loss of valuable institutional knowledge. Investing in employees is an investment in the company’s future.

3. Creating Long-Term Value for Shareholders

Contrary to popular belief, prioritizing short-term profits at the expense of other stakeholders can actually harm shareholders in the long run. While a company's stock price might surge temporarily due to cost-cutting measures or increased dividends, such actions often lead to unsustainable growth. When a company cuts corners to maximize profits, it risks damaging its reputation, facing regulatory penalties, and experiencing public backlash, all of which can negatively impact stock value over time.

By adopting a long-term, sustainable approach, companies can create value for shareholders that endures over time. Ethical companies tend to perform better financially in the long run because they build strong relationships with their customers, employees, and communities. This holistic approach results in more stable and consistent growth, which ultimately benefits investors.

4. Contributing to a Better Society

Businesses do not operate in a vacuum; they are part of a larger community and have a responsibility to contribute positively to society. When companies focus solely on profit maximization, they often ignore the social and environmental impacts of their actions. From environmental degradation to the exploitation of workers, the consequences of corporate greed can be devastating.

By embracing corporate social responsibility (CSR) and prioritizing sustainability, companies can play a significant role in addressing global challenges such as climate change, income inequality, and social justice. Not only does this improve the company’s public image, but it also ensures that the business operates in a healthier, more stable environment, which is beneficial for everyone in the long run.

My thoughts...

Don't get me wrong, profit is essential for business success, but corporate greed is a short-sighted approach that can undermine a company's reputation, employee morale, and long-term viability.

Companies who prioritize ethical practices, employee well-being, and long-term value creation are more likely to build trust, foster loyalty, and thrive in today’s increasingly values-driven market. Greed may yield temporary gains, but responsible business practices lead to sustainable success.

What can companies do?

If companies want to stay in good standing, then they need to challenge themselves to think and do differently. Most operate off of the historical ways of "that's how it's always been done," but the companies that will succeed will be the ones that have an open mind to new ways of doing business moving forward.

About the Author:

Dan Cosgrove is the CEO of Wellness for the Workforce a business focused on accelerating the physical, mental, and financial health of Americans. Dan is a native of Cincinnati and is based out of Boston with his wonderful wife, cute toddler, and a dumb dog named Waffles. He would love to connect to see how he can add value and joy to your life.