The Truth is Powerful

Profits, Not Politics

Tech firms are returning to business models that focus on products and profits rather than politics and causes. Well, two are, anyway. The web software firm Basecamp is asking employees not to discuss politics or partake in activism on company time. Founder and CEO Jason Fried also announced that the privately owned firm would be dropping committees, obsequious peer-performance reviews, and “wellness” and other “paternalistic benefits” that try to nudge employees toward a particular lifestyle.

Basecamp is following in the footsteps of cryptocurrency firm Coinbase. Last September, Coinbase CEO Brian Armstrong told employees to stop bringing their politics and causes to work and announced that the company would not take political stances unrelated to its core mission. For employees who didn’t like the new policy, Armstrong offered a generous severance package (5 percent of workers took him up on the offer). The announcement, which occurred several months before Coinbase’s April IPO, bucked the idea that public companies must weigh the interests of multiple stakeholders (for example, politically minded employees or victims of social injustice).

Tech companies have traditionally been ahead of the curve. They were early to the idea that firms should wear their morality on their sleeves and indulge their […]

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