A Pagan's Blog

A Pagan's Blog

Corporate Sociopaths and Decent People

posted by Gus diZerega | 11:48am Wednesday February 18, 2009

Pantheacon coverage will return shortly – I gotta catch a plane.

Markets are wonderful means by which people can make voluntary exchanges.  They are indispensable servants.  But when they become our masters all values are subordinated to enabling the most ruthless manipulators make as much money as possible.  We have seen recently what these corporate parasites are capable of doing, both in robbing their businesses and impoverishing so many of us.  

With all the bleating and whining going on about how the executives who helped bankrupt their businesses take so much ‘risk’ and so should be allowed to pay themselves obscenely, it is refreshing to see how real creative businesspeople can act.  



Compare our big bankers and auto executives seeking taxpayer handouts with Leonard Abess, jr.  The Miama Herald reports

After selling a majority stake in Miami-based City National Bancshares last November, all he did was take $60 million of the proceeds — $60 million out of his own pocket — and hand it to his tellers, bookkeepers, clerks, everyone on the payroll. All 399 workers on the staff received bonuses, and he even tracked down 72 former employees so they could share in the windfall.

    For longtime employees, the bonus — based on years of service — amounted to tens of thousands of dollars, and in some cases, more than $100,000.

The story ends

Workers were provided with financial counseling and special high-rate certificates of deposit at City National.

”It was like a lottery, only better,” Virginia C. Dunn, managing senior vice president, said of the gift. “Because it came from someone’s heart.”

MSNBC reported

A total of $6.6 million is being shared by just 230 employees of Waukegan-based Peer Bearing Co., with facilities in England and the United States. Amounts varied and were based on years of service.

“They treated us like extended family,” said Maria Dima, who works at Peer Bearing along with her husband, Valentin, and received a somewhat smaller check than he did. “We won the lottery.”

With $100 million in sales last year, Peer recently was acquired by a Swedish company for an undisclosed amount. Danny Spungen, whose grandfather founded the company in 1941, said it was a unanimous family decision to thank employees with the bonuses.

Of course sociopaths and greedy hard hearted scoundrels are all too present in these smaller enterprises, as in every other realm of life.  But when ownership is concentrated in an individual or a family, they can exercise a sense of moral responsibility.  When ownership is scattered among millions of shareholders, a Petri dish for the rise of sociopaths to domination has been prepared.



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Darren

posted February 18, 2009 at 11:40 pm


Gus,
I agree wholeheartedly with the idea that workers should be family, and your mention of a publicly-held company being a breeding ground for greed is very insightful. If a company’s board of directors was forever banned from holding the CEO or other top positions, they might actually make decisions that helped the company rather than simply preparing themselves for their own future greedy windfall. Another thought is to base CEO pay on a delayed examination of the corporation’s health. Pay them a good basic salary, but defer bonuses and rewards until a year or more later so that a fair examination of the results of their leadership can emerge. This might also serve to keep company-hopping to a minimum and instill a sense of family amongst the higher-ups.
Keep up the wonderful work here. I happily look forward to seeing your thoughts on a regular basis!



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Pitch313

posted February 19, 2009 at 12:18 pm


As I recall, some business owners during the early industrial age had some utopian or aristo-paternalistic (I’m not sure which)ideas about how life for workers could be organized and lived around a company. As a kid growing up in California, I saw the last vestiges of this social economic model in a couple North Coast logging-centered company towns in their death throes.
I think that, even when the owner-worker companies turn out, to our surprise, to have benevolent owners, that other models of ownership that do not rely on the values and ethics of a few owners toward workers suit my own Neo-Pagan outlook better. But, honestly, I don’t think of those alternative models as especially Pagan or related to Paganism. They’re just kinda Lefty.



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Gus diZerega

posted February 20, 2009 at 9:09 am


Thanks Darren -
and Pitch-
First, you are right – these comments are not particularly Pagan. But before joining Beliefnet my blog was never just on Paganism as a trip through the archives would show. While I am radically increasing the ratio of Pagan to other content it will never be fully on explicitly Pagan topics, just by a Pagan. I’m also a citizen, a role I feel compatible with being Pagan but focusing on issues which only partially overlap.
I agree with you regarding owner paternalism, no matter how well intentioned. But the examples I gave are not paternalistic. These men gave their employees money, to do with as they will.
By comparison places like Pullman were monuments to the owner’s ego and sense of being the arbiter of other people’s ways of life. Objectionable to its core..
I’m not sure towns like Scotia (I’m in N. CA too most of the time) were really that kind of thing. I got the impression that at their best they were providing good living conditions out in the middle of ‘nowhere’ with Pacific Lumber just the landlord. If they also tried to control workers’ lives, or load the dice in favor of the owners’ values, then that’s another matter and I’d agree with your criticisms.
Having said all that – your alternative is not as benign as libertarians think. The market actively loads the dice in favor of valuing everything in money terms. I personally think that is deeply subversive of values inherent in Paganism. We need markets – they are certainly better than socialist attempts to do without them – but the markets should be subordinated to civil society so that money will not trump all other values when making decisions.
This opens up very complex issues that may be worth a blog. I dunno. I am working on this issue quite a bit in my more academic persona.



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