Read the last sentence in my post again. The company will correct itself when the costs of the failed business model demand it or they will fail as a business. Ether way the problem is solved.
Um yeah. Lovely theory. Have you noticed that none of those things have happened? The company hasn't corrected itself. It won't. The economy is tough and they will just continue screwing people. Also, it also has not failed. It is as profitiable as ever. Customers aren't going away because of the way Wal-Mart treats employees. Neither is there a shortage of people desperate enough to work there.
That is not theory.
That is the difference between your theory and what happens in real life.
That is reality.
The examples of this are too numerous to ever count.
If you have ever lived in a country with little or no regulation in this regard, you will find out this is reality everywhere there is no such regulation.
Name a country with no environmental regulation or enforcement.
I'll show you a country where the envirnment is destroyed.
Name a country with no labor regulation or efnorcement.
I'll show you a country with horrible labor conditions and wages.
Reality.