Capitalism and Social Licence
As we've seen in recent days with VW, regardless of a corporations primary status in an industry, its social status is the underlying foundation that allows it favor. When Tweed Marijuana Inc. was introduced to investors, prior to the IPO, Bruce and Chuck were doing their rounds in the media with forward looking statements on this Grand Corporate Idea they were planning to implement in the coming months. And voila 17 months later, we are here.
But how did we get here? Well, I propose it is because the officers of this corporation did what they told investors they set out to do, in earnest,nothing more,nothing less. The Board of directors have proven to be diligent in their business operations, staying on a legal path within the MMPR and striving for impeccable quality in customer and product relations. And here lies the foundation of Canopy Growth Corporation and its primary and favorable industry status.
With our giant economic neighbors to the south dabbling in recreational sales of cannabis and our outlaw siblings to the west blurring the lines between MMJ and RMJ, why would Canopy not cheat juuust a little; just enough to get ahead and maintain that industry edge? Because it would be a fatal error for the corporation. VW lost 36% MV in just 48 hrs: nearly 40 billion dollars. That market share disappeared somewhat because of the costs associated with making the recalls, but primarily because consumers, and investors ( Society as a whole) yanked its social licence. They lied to customers and cheated competitors.
Canopy does have a close equivalent I believe in Privateer Holdings. Diverse Brands positioned for a fast emerging market. But the Canopy Board of Directors and Investors have committed to only operating where the market is Federally permissible, no matter how lucrative it may seem, in order to maintain a good relationship with regulators and keep investors confidence. By doing this, the right thing, Canopy has set them-self apart from other players, in the MMAR for example, that disregard how the public view their operations within communities. Canopy is maintaining its social licence which will in turn enable this upstanding corporation and the upstanding individuals it employs to capitalize financially.
No one wants to live in a society where people and businesses are willing to do 'whatever' to make money, if that means undermining the very society it wishes to be a beneficiary of. The positive relations in the community and the forthcoming openess with investors has identified Canopy Growth Corporation as a National and International Brand that governments, Regulators, Doctors, Patients and other companies in the industry can trust and want to do business with readily. That is the Brand. That is why Canopy Growth Corporation will succeed, along with successful business plans and execution. IMO
