In the article Three Things to Know to Hold Wells Fargo Accountable the author Lynn Parramore (Senior Research Analyst at Institute of New Economic Thinking) relays what William Lazonick (Professor of Economics, University of Massachusetts Lowell) identified as the three things we need to know: 1) American businesses have become stock manipulation machines; 2) focusing on short-term stock prices leads to corruption; and 3) punishment means little until executive pay is understood. The first essentially speaks to the profit maximizing intent of business and its executives and the second to the importance of it happening now if not sooner while the third is that the entire scheme is ultimately profitable because of the enormous size of the gains. So now that we know these things, what are we to do about it? Continue reading
Many of America’s business-minded, especially corporate CEOs, are unabashedly advocates for the market being the solution to everything. Privatize it, is the answer to it all! Yet at the very same time they also spend vast sums of money on lobbyist to rig things in their favor, which often minimizes (and even eliminates) the dynamics of the market. Seemingly for maximizing their profit relying on the market alone is not their preference, yet it is thought best for everyone else. Some even sing the praises of a free market and yet oppose full disclosure in labeling of products. It appears they think free means free to maximize profit in any way one can. Go figure! Continue reading
Reflecting on “America’s Descent Into Madness” by Henry Giroux, we most certainly don’t but need to provide learning experiences in and through public education that will facilitate every person’s development. What should we all seek to develop? Our personhood, our humanness! That is, we should all strive to become fully human in support of us—each other and all others—realizing progress toward becoming a more humane society. How could we have a more humane society without its constituent members expressing the human qualities of kindness, care and concern for others? Obviously we can’t, and clearly we haven’t!
Preparing people to become instruments for wealth accumulation was never right but it surely is effective for preparing people to be objects for exploitation. James Boyce in Pursuing Profits – or Power?, asserts, “although corporations could benefit from the bigger pie produced by a better-educated labor force, there’s a tension between what’s good for business and what’s good for the business elite.” As currently framed the conduct of business is designed for wealth accumulation not to further human progress. In other words, maintaining power over others is central to the practice of American capitalism, which has also captured society and colonized democracy.
The Incompatible No Alternative
Thus efforts toward educating people alone will in all likelihood fail. Why?
As Giroux said quite succinctly, “rather than work for a more dignified life, most Americans now work simply to survive in a survival-of-the-fittest society in which getting ahead and accumulating capital, especially for the furling elite, is the only game in town.” So it is the way we’ve tacitly learned to roll. Seemingly most have accepted the there–is-no-alternative argument (TINA), remaining unaware that we will all lose as each seeks his/her own gain.
David Kristjanson-Gural, professor of economics, said it best “Capital will continue to corrode democracy, as certainly as oxygen corrodes iron, as long as a few hold sway over investment and jobs and are committed to using the wealth that we generate to undermine the will of the people.” It is designed into the system!
The incongruence between our system of economics and a (humane) democratic society is far too significant—it is oil and water, both figuratively and literally. Specifically, it is the central precept of our egoistic capitalistic system of economics—that people are primarily if not solely driven by material self-interest—that is the primary cause of the circumstances we are experiencing. The vast majority have tacitly learned to believe they are at base the most intelligent animal whose aim is to have it all for one’s self—the one with the most toys wins!
People unconsciously assume that to be human is to structure life as the pursuit of one’s material self-interest, so they unceasingly strive to have more, thus forsaking them being and becoming more human. Unfortunately the getting of the toys in all likelihood will only be realized by a privileged fortunate few—as Adam Smith himself had essentially acknowledged in The Wealth of Nations that while the many won’t gain (in this system) it does keep them industrious to the benefit of the few.
There Are Alternatives
People must acknowledge that for a viable and sustainable (humane) society there are alternatives to oil but not for water! So clearly we need people to awaken to their human potential in order for the critical mass necessary to affect a fundamental transmutation of society—piecemeal reform will not do. Again Giroux astutely asserted, “It will not be enough only to expose the falseness of the stories we are told. We also need to create alternative narratives about what the promise of democracy might be for our children and ourselves.” Educating people in an effort to develop their capability to think critically is paramount, but more is needed!
We must also understand that unless the system of economics is re-cast to serve all humankind then the system will continue descending us into madness. We can’t continue with making it fit! Because the conduct of business is deeply interwoven throughout the lives of so many a self-serving and narrow focus of attention creates a broad swath of destruction. In a recent report on a decade of historic rising profits and stagnant wages, Lawrence Mishel and Heidi Shierholz of the Economic Policy Institute state that “an economy that does not provide shared prosperity is, by definition, a poorly performing one.” It is poor performing for the many because it doesn’t fit, it doesn’t serve!
Again we can’t continue with trying to make it fit, as if there is no alternative. Simply, we can’t continue to be so myopically focused on profit and shareholder value—which serves but a few—if we wish to be a sustainable society. Exploitation and extraction as a means of wealth accumulation must end!
It should be clear that the intent of business must change to where concern for people’s development and wellbeing are paramount. What should be placed ahead of the development and wellbeing of people? The answer should be obvious, nothing!
Moreover, because we are so deeply interdependent, individually and collectively we need everyone to actualize his/her potential as a human being—developing toward becoming more fully human—and correspondingly to be stewards of our natural environment. Given that the future is where (our) life and those who come after us (yes the children) will be lived, we mustn’t waste a single moment. That is, the future begins now in this moment hence it is imperative that what we enact in this moment be a life-enabling and life-furthering act. Decisions and actions that diminish our viability are wrong decisions and actions, so we must cease making and taking them.
A Place To Begin
If only the leaders of business organizations took the long view and critically thought about businesses’ place in society and thus businesses’ responsibility they could change the why and how of business. They would clearly see that there are alternatives.
We can realize a changed-for-the-better society by changing our practices—we can realize change by enacting it now, one decision at a time one business at a time. If those in authority of a business enterprise are in deed leaders then they ought to exercise (their) authority over the resources they oversee for the betterment of all those they affect. If they can’t or won’t do so then they must cease trying to selfishly influence the future of society. They must either exhibit the courage to lead or get out of the way of human progress. Let’s ask again, what should rightfully be placed above the development and wellbeing of people; what’s more important than a human life fulfilled?
“The price good men pay for indifference to public affairs is to be ruled by evil men” (Plato). We (as a society) should be outraged over what people in high places are trying to do to (our) public education. Continue reading
In an HBR Blog Network article Gianpiero Petriglieri, Associate Professor of Organizational Behavior and Director of the Management Acceleration Programme at INSEAD, spoke to the question are business schools clueless or evil? Professor Petriglieri’s answer is “business schools are neither clueless nor evil. They are—like most students that flock to their classrooms—in transition. Overtly working to improve their competence and image and covertly wrestling with questions about identity and purpose.” Continue reading
A recent HBR Blog post by John Kotter speaks to the confusion surrounding management and leadership. He continues by outlining three key mistakes people make in confusing management and leadership: 1) using the terms interchangeably; 2) using leadership to refer to those at the top of the hierarchy; and 3) thinking leadership is about personality characteristics (i.e. charisma). Let’s critically think about these mistakes to better understand their likely causes. Continue reading
There seems to be a debate over the use of standardized test results for accountability as the way to improve student achievement, and thus our education system. Effectually, this debate is turning attention away from understanding the concrete educational experience toward the abstract measures. No wonder teachers and children have to be incentivized to respectively teach and learn! Continue reading