Symbolic Lesson for American CEOs

I am a staunch and vocal critic of American CEOs. I believe, that as a group, they they have become a clear and visible example of how greed and selfishness have overtaken American society, especially in the area of large, corporate business.

They have grown to be overly greedy, believing they are entitled to multi-million dollar compensation packages, even when the company loses money or goes bankrupt. They treat their employees as just another resource manipulated for profit, quick and eager to lay off workers and transfer jobs overseas so their already profitable company (and by default, themselves) can earn a few more dollars.

They decry the lack of loyalty among employees toward the company while displaying little loyalty to those same workers who lack anywhere near the job security their parents enjoyed. They have completely forgotten their real place in the grand scheme of things, forgetting that without those employees working hard and producing quality products, there would be no profits and no excessive pay.

And they lack the understanding that profit is but one of the responsibilities of a business in the community. There is an unstated covenant between employers, employees, and the community. While a business has the right and the responsibility to make a profit and owners and managers have a right to a fair and just compensation, the business also has a responsibility not to unfairly take advantage of workers or cast them aside in the pursuit of excessive profits as if the employees do not matter. A business also has a responsibility to the community to operate in a way that promotes stability and growth rather than plundering the community in which it operates.

Fortunately, there are exceptions to this trend. ABC News did a story the other day on an entrepreneur who built a large business and decided the best thing he could do as he approached the end of his life was to divest himeself of the company. Instead of selling it for what I'm sure would have been millions of dollars, he GAVE the company to his employees. This means that each of several hundred employees now has a stake in the company worth several hundred thousand dollars! When he was asked why he did this, he talked about how his employees were part of his family and that it was because of their talent, commitment, and quality work that the business had grown to be so profitable and valuable. You can see the story by clicking on this link: http://abcnews.go.com/WN/owner-multi-million-dollar-company-hands-business-employees/story?id=9875038

Don't get me wrong, I'm not advocating that every business owner go and give away their company. Obviously, public corporations don't really have that option. And families have the right to pass the business down to younger members. The point is that this dramatic gesture is just the culmination of a philosophy of life and business which recognizes that wealth matters less than family, relationships, and loyalty. It is no mystery to me that Mr. Moore's business was successful because his employees have always given him their best effort, just as he gave them his best.