Posts tagged with: business

President Obama’s speech last week in which he asserted to businesspeople, “You didn’t build that,” has been getting some pretty harsh and some pretty hilarious responses.
In this week’s Acton Commentary, “It Takes a Village to Raise a Business,” I caution against responses that play into a simple individualist/collectivist dichotomy that underlays the president’s message:

We all know at some level that we didn’t get where we are on our own, and that we have an ongoing responsibility and dependence on others for our continuing enjoyment of the goods of human existence. Christians realize too that our independence and freedom is ultimately limited and dependent not simply on other people but on the grace of God.

So to President Obama’s problematic construal of the structure of society (essentially consisting of the individual and the helping hand of government), critics shouldn’t respond simply with the vehement assertion of naked individualism. Instead, we need to articulate a more balanced and accurate perspective, one that properly relates “independence and mutuality, individuality and community.”

One such response from Hunter Baker is here, and is worth checking out.

Legatus, an international organization of Catholic business professionals, is celebrating its 25th year of existence. The mission of Legatus is to help its members and spouses live out their Catholic faith and to spread that faith “through good works, good ideas, and high ethical standards.”

The current issue of Legatus magazine features an article by the Acton Institute’s Michael Matheson Miller, research fellow and director of Acton media. Entitled ‘Poverty, social justice, and the role of business’, Miller points out that business people – especially business people with well-developed faith lives – have a crucial role in alleviating poverty and creating truly just environments in which to grow businesses:

Poverty has been the norm for most people throughout history. The real question is: How do we create wealth?

That’s where businesspeople come in. Governments can help by providing clear private property rights, rule of law and justice. But they cannot create wealth. The Church is essential because it helps build a moral culture that supports strong families and vibrant communities. But the Church’s function is not to create wealth. Wealth is created through business and entrepreneurship….

I encourage you to think about how to bring your faith and business skills to bear on questions of poverty, social justice and development. It’s not easy and there isn’t single or simple solution to poverty, but the role that faithful Catholic businesspeople can play has been overlooked. It’s time to change the paradigm.

The men and women of Legatus receive professional and spiritual support in order to make a positive impact  in business, community and family life. They stand poised to change the paradigm, as Miller states, in their vocations as faithful business leaders.

Work: The Meaning of Your Life“When conducting Business as Mission, the primary purpose has to be to expand the Kingdom of God,” said Joseph Vijayam, founder and managing director of Olive Technology, a Colorado Springs-based information technology services provider. “Profits and an increase of shareholder wealth are an important result of a solid business that is well executed and are essential for the survival of any business, but they need not become the very purpose for existence.”

Vijayam invites Christian business leaders to reflect on the place of profits in the context of Tax Day here in the US: “I am not challenging business owners to stop making profits, but instead to look at those profits in a completely new way.”

In a piece for Comment magazine last year, “Reforming Economics,” I argued, “For too long a view has held dominance that has portrayed profit as a purpose or end, rather than as a means or a consequence. That is to say, the pursuit of profit is acceptable when it is couched within the broader framework of and constrained by the norm of service of others.”
(more…)

Calvin Coolidge quipped shortly before his death, “I feel I no longer fit in with these times.” The words came not long before FDR’s ascendency to the presidency and not long after the upsurge of government activism that started in the Herbert Hoover administration. Coolidge, even for his time, was seen as old fashioned, a throw back to simpler values, ethics, and principles. Coolidge cut the name tags out of his suits when he asked his wife to resale them, so not to profit from his name and position. He was lampooned for his hands off approach to the presidency. Ronald Reagan was even teased by the Washington Press Corps for hanging up a portrait of Coolidge in the White House. By many academics today, Coolidge is chiefly mischaracterized as a simpleton largely from quotes like “The chief business of the American people is business.” In that speech in 1925 delivered to newspaper editors, Coolidge also went on to say, “Of course the accumulation of wealth cannot be justified as the chief end of existence.”

I can’t help but feel that a new appreciation for Coolidge is long overdue. Why? Because almost everything Coolidge warned against is happening now. As the nation faces government mismanagement, rapid growth of centralized power, crippling debt, decline of purpose, and moral decay, the clarity of his ideas are magnified. Coolidge is also the subject of a new biography by Amity Shlaes due out in June. As a public servant, he is vastly underrated for his writing and speeches. He spoke in a manner that was easily understood and he popularized the message of thrift, limited government, religious principles, and conservatism. But there too was an intellectual depth to his remarks about conservatism not seen today by the popular dispensers of those ideas.

One wonders if there will be a major candidate in the general presidential election to offer a defense of the free economy. And in doing so, can defend the great need for morality and virtue within the free market.

Below is a speech Coolidge gave in 1916 as Lieutenant Governor of Massachusetts on the issues of character, the commercial society, and materialism. The remarks were given to the Brockton, Mass. Chamber of Commerce. Coolidge’s remarks are printed in their entirety.

Man’s nature drives him ever onward. He is forever seeking development. At one time it may be by the chase, at another by warfare, and again by the quiet arts of peace and commerce, but something within is ever calling him on to “replenish the earth and subdue it.”

It may be of little importance to determine at any time just where we are, but it is of the utmost importance to determine whither we are
going. Set the course aright and time must bring mankind to the ultimate goal.

We are living in a commercial age. It is often designated as selfish and materialistic. We are told that everything has been commercialized. They say it has not been enough that this spirit should dominate the marts of trade, it has spread to every avenue of human endeavor, to our arts, our sciences and professions, our politics, our educational institutions and even into the pulpit; and because of this there are those who have gone so far in their criticism of commercialism as to advocate the destruction of all enterprise and the abolition of all property.

Destructive criticism is always easy because, despite some campaign oratory, some of us are not yet perfect. But constructive criticism is not so easy. The faults of commercialism, like many other faults, lie in the use we make of it. Before we decide upon a wholesale condemnation of the most noteworthy spirit of modern times it would be well to examine carefully what that spirit has done to advance the welfare of mankind.

Wherever we can read human history, the answer is always the same. Where commerce has flourished there civilization has increased. It has not sufficed that men should tend their flocks, and maintain themselves in comfort on their industry alone, however great. It is only when the exchange of products begins that development follows. This was the case in ancient Babylon, whose records of trade and banking we are just beginning to read. Their merchandise went by canal and caravan to the ends of the earth. It was not the war galleys, but the merchant vessel of Phoenicia, of Tyre, and Carthage that brought them civilization and power. To-day it is not the battle fleet, but the mercantile marine which in the end will determine the destiny of nations. The advance of our own land has been due to our trade, and the comfort and happiness of our people are dependent on our general business conditions. It is only a figure of poetry that “wealth accumulates and men decay.” Where wealth has accumulated, there the arts and sciences have flourished, there education has been diffused, and of contemplation liberty has been born. The progress of man has been measured by his commercial prosperity. I believe that these considerations are sufficient to justify our business enterprise and activity, but there are still deeper reasons.

I have intended to indicate not only that commerce is an instrument of great power, but that commercial development is necessary to all human progress. What, then, of the prevalent criticism? Men have mistaken the means for the end. It is not enough for the individual or the nation to acquire riches. Money will not purchase character or good government. We are under the injunction to “replenish the earth and subdue it,” not so much because of the help a new earth will be to us, as because by that process man is to find himself and thereby realize his highest destiny. Men must work for more than wages, factories must turn out more than merchandise, or there is naught but black despair ahead.

If material rewards be the only measure of success, there is no hope of a peaceful solution of our social questions, for they will never be large enough to satisfy. But such is not the case. Men struggle for material success because that is the path, the process, to the
development of character. We ought to demand economic justice, but most of all because it is justice. We must forever realize that material rewards are limited and in a sense they are only incidental, but the development of character is unlimited and is the only essential. The measure of success is not the quantity of merchandise, but the quality of manhood which is produced.

These, then, are the justifying conceptions of the spirit of our age; that commerce is the foundation of human progress and prosperity and the great artisan of human character. Let us dismiss the general indictment that has all too long hung over business enterprise. While we continue to condemn, unsparingly, selfishness and greed and all trafficking in the natural rights of man, let us not forget to respect thrift and industry and enterprise. Let us look to the service rather than to the reward. Then shall we see in our industrial army, from the most exalted captain to the humblest soldier in the ranks, a purpose worthy to minister to the highest needs of man and to fulfill the hope of a fairer day.

Franciscan University in Steubenville, Ohio, has launched a new Center for Leadership which university alumnus Rep. Jeff Fortenberry, R-Neb., lauds as a project that “roots young men and women in virtue, forms them as leaders, and grounds them in sound philosophical thought.”

David Schmiesing, who directs the center and is also vice president of student life at Steubenville, said, “This is our most explicit and focused effort yet to train leaders for the Church and world.”

One of the resources provided to students through the Center is the university’s distinguished speakers series with the likes of Virtuous Leadership author Alexandre Havard and Acton Institute president and co-founder Rev. Robert A. Sirico, who is on the center’s board of advisors. Rev. Sirico spoke there on character, virtue, competence and vocation.

From the article by NCR writer Joseph Pronechen:

“We have a chance to speak with and meet with different distinguished speakers who have been all around the world studying incredible things,” said leadership student Camille Mica. “Getting the opportunity to talk with these speakers with such incredible credentials, I’ve learned a lot from them and been very encouraged and strengthened by their words and message and example.”

Though the leadership center will have a global outlook, Schmiesing noted that, ultimately, all leadership is local.

“If Catholic leaders don’t lead in their families, then all the other leadership is not going to be effective,” he said. “Leadership in the family is essential and applies to men and women. We’re teaching students in the center the skills, knowledge, virtues that will help them to be more effective in their families and then flow out to the churches, then to occupations.”

David Schmiesing is the brother of Acton Research Fellow Kevin Schmiesing.

Read “Training Leaders in Christian Virtue” on the website of the National Catholic Register.

Blog author: jballor
posted by on Monday, January 9, 2012

Made-in-ChinaThe latest episode of This American Life follows the story of Mike Daisey and his investigation into the origins of Apple products, especially the iPhone which is “Made in China.”

What might the iPhone say if it could speak for itself? Ira Glass provides some answers to such a question in the opening moments of this episode, “Mr. Daisey and the Apple Factory.” It’s illuminating that Daisey half-jokingly describes his devotion to Apple products in religious terms (this doesn’t prevent him from using the Lord’s name in cursory fashion, however).

Just like the pencil in Leonard Read’s essay, “I, Pencil,” the iPhone is “a mystery,” one “taken for granted by those who use me, as if I were a mere incident and without background. This supercilious attitude relegates me to the level of the commonplace. This is a species of the grievous error in which mankind cannot too long persist without peril.”

There are many, many lessons to learn from the story of I, iPhone. One of these lessons has to do with the dignity of the various people who work together to invent, assemble, market, sell, and distribute such wonders. This is where This American Life largely focuses its energies in this episode.

Another lesson has to do with the lessons about global trade and interdependence. In his book Work: The Meaning of Your Life—A Christian Perspective, Lester DeKoster leads us through a thought experiment, in this case having to do with “I, Chair.”

As seeds multiply themselves into harvest, so work flowers into civilization. The second harvest parallels the first: Civilization,
like the fertile fields, yields far more in return on our efforts than our particular jobs put in.

Verify that a moment by taking a casual look around the room in which you are now sitting. Just how long would it have taken you to make, piece by piece, the things you can lay eyes on?

Let’s look together.

That chair you are lounging in? Could you have made it for yourself? Well, I suppose so, if we mean just the chair!

Perhaps you did in fact go out to buy the wood, the nails, the glue, the stuffing, the springs—and put it all together. But if by making the chair we mean assembling each part from scratch, that’s quite another matter. How do we get, say, the wood? Go and fell a tree? But only after first making the tools for that, and putting together some kind of vehicle to haul the wood, and constructing a mill to do the lumber, and roads to drive on from place to place? In short, a lifetime or two to make one chair! We are physically unable, it is obvious, to provide ourselves from scratch with the household goods we can now see from wherever you and I are sitting — to say nothing of building and furnishing the whole house.

There’s much more to unpack just from these two lessons, of course.

How much of our expectations about the conditions of workers are simply culturally hegemonic forms of colonialism? Don’t Americans tend to assume that the ideal is immediately possible? What about the difficult choices that actually face workers in other countries in their concrete situations?

On these kinds of choices, consider Nicholas Kristof’s “In Praise of the Maligned Sweatshop” (Kristof is also heard from in this episode of This American Life): “We in the West mostly despise sweatshops as exploiters of the poor, while the poor themselves tend to see sweatshops as opportunities.”

As we listen to Daisey’s story, our natural instinct is revulsion. We certainly wouldn’t want to live and work that way. And even apart from concerns about cultural colonialism, Daisey documents real abuses that ought to make both consumers and producers reassess how things are done.

And so what might it mean for someone else to have the opportunity to work their way out of such situations, to have more choices than the binary options of industrial manufacturing and subsistence farming (or starving), and to have these opportunities not merely individually but corporately?

What might true compassion, which places us within the context of the other person in their concrete situations, mean in these kinds of settings?

With its subject, use of Scripture, and majestic soaring choruses, George Ferederic Handel’s Messiah is easily the most recognizable musical piece in Western Civilization. It is also perhaps the most widely performed piece of classical or choral music in the West. After hearing a performance of the Messiah, fellow composer Franz Joseph Haydn simply said of Handel, “This man is the master of us all.” Not to be outdone, Beethoven declared, “Handel is the greatest composer who ever lived. I would bare my head and kneel at his grave.”

The text of the Messiah, compiled from Scripture, was sent to Handel by his friend Charles Jennens and begins with Isaiah 40, “Comfort ye, comfort ye my people.” Part 1 of the Messiah deals with the prophetic pronouncements of the Virgin Birth, and the actual birth account taken from Luke’s Gospel. Part II deals with Christ’s passion and his atoning death, his resurrection and ascension, and sending out of the Gospel. Part III is a celebration of the general resurrection of the dead, the day of judgment, the victorious nature of Christ and his triumphant reign. It is a bounty of Christian doctrine packed into an English oratorio. Amazingly, Handel composed the work in 23 days. Quoting the Apostle Paul, Handel said, “Whether I was in my body or out of my body as I wrote it I know not. God knows.”

Messiah is so masterful and celebrated it overshadows some of Handel’s other stellar work. Concerning the Messiah in particular, there is quite a bit of information out there about Handel the entrepreneur. Below is an audio story about Handel’s entrepreneurial endeavors and his charitable work tied into the Messiah that aired on PBS in 2009. You can watch the video version of the story here.

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Tim Slover, author of Messiah: The Little-Known Story of Handel’s Beloved Oratorio adds this note,

The Royal Family, fellow Germans from the same region of Hanover, were staunch supporters of his work, but this did not translate into financial security for Handel, as the Crown only sporadically underwrote his opera seasons. When weddings or other occasions called for it, the Hanovers commissioned music from him, but this was never enough to live on, and, anyway, Handel was no court composer. By temperament he was an entrepreneur. He spent several months of every year striking business deals with theater owners, auditioning and hiring singers, and rehearsing and performing instrumental music, operas, and oratorios. His fortunes rose or fell with the public’s reception of his music, and there were lean times as well as prosperous ones.

Messiah, while popular at the time, was certainly not as beloved as it is today. There was controversy surrounding the performance, specifically that such a sacred piece of music would be played outside of the Church and in secular music halls and venues. And while Messiah was composed for charitable purposes, it showcased more of Handel’s entrepreneurial skills and willingness to take risks.

Handel, a devout Lutheran, loved sacred music and believed every word of what he wrote and composed. As mentioned earlier, Handel took a lot of risks with his music because he liked to perform what he loved most. He was bankrupt at various times in his life and had fallen out of favor with the public. Just a few years before the Messiah was composed, Frederic the Great declared that, “Handel’s great days are over. His inspiration is exhausted.” Handel himself was even close to being sent to debtors prison. Before Messiah, Handel conducted what he thought would be his last performance and retired for a time. When Messiah was first performed in 1742, it raised enough money to free 142 men from debtor’s prison so their sons and daughters would not be orphans.

Many readers have of course seen the Messiah performed and may have attended a performance this year or selections may have been performed in their places of worship. It was originally intended as a Lenten piece, but is now largely played in the Christmas season. What is so remarkable about the Messiah to me is not that it is just such a majestic and beautiful work of music, but that it is impossible to separate Christ from the performance. While many sacred works are embraced by a secular world and secular music performers, the meaning of the Messiah is so plain it cannot be overlooked. In fact, Jennens selected the text of Messiah to counter the rising arguments of the deists and secularists of his day.

Messiah thunderously crushes the secular agenda and goals of today or of any period. Theologian Tom Oden offers some profound words on the Western world and Christ in his systematic theology The Word of Life. “It would be strangely unhistorical if the historians accidentally ignored him [Christ] or decided to study all figures except the one who has affected Western history most,” says Oden. He adds that “Western history would not be Western history without him.” Later on Oden observes, “Deeper even than the mystery of his astonishing historical influence is the simpler, starker question that rings through Christian reflection: Cur Deus Homo? Why did God Become human?” Handel answers that so thoroughly, beautifully, and triumphantly with his Messiah.

Blog author: kspence
posted by on Thursday, October 6, 2011

My sister has a small pillow in her bedroom that’s embroidered with the words “She who dies with the most shoes wins.” I’m sure Lloyd Blankfein’s daughter has one just like it. And you’d think that the patchouli-scented Occupy Wall Street crowd might not like such a pillow, but you’d be wrong, as Ray Nothstine pointed out in this week’s Acton Commentary. The anger at Zuccotti Park isn’t sparked by greed on Wall Street, it’s sparked by greed in Zuccotti Park.

Unions that have joined the Occupy Wall Street protests are signing on to these demands for government-facilitated greed. The local Transport Workers Union spokesman told CNN,

Their goals are our goals. They brought a spotlight on issues that we’ve believed in for quite some time now. … Wall Street caused the implosion in the first place and is getting away scot-free while workers, transit workers, everybody, is forced to pay for their excesses.

So in return, the Transport Workers Union demands free art school for everyone. How that is in the best interest of the members of Local 100 is beyond me, because in the end, their union is parroting Gordon Gecko’s “Greed is good” speech from Wall Street.

The Transport Workers, the SEIU, and other labor groups pretend to align themselves with a groundswell of moral outrage directed at thieving, manipulative fat cats, but the outrage isn’t moral at all. It’s appetitive, and that’s not the political urge of a free society.

Author’s Note: My sister, an extremely smart and capable young lady, complains that I make her sound “like a complete airhead.” That is not at all the case, so if this post gave you that impression, know that she is very poor-in-spirit.

Billionaire Democrat Ted Leonsis wrote a posting titled “Class Warfare – Yuck!” on his blog yesterday, in which he implored the president, to whose campaign he donated the maximum amount: “Hit a reset button ASAP. Rethink how to talk to businesses and sell business leaders on your plan to make America great! Many of us want to be a part of the solution. We aren’t the problem.”

Today, Charles Schwab published an opinion piece in the Wall Street Journal, and again the title says it all: “Every Job Requires an Entrepreneur.” If there is to be an economic recovery, he says,

The leaders of both parties, Republicans and Democrats alike, must lend their voices to encourage and support private enterprise, both for what it can do to turn our economy around and for the spirit of opportunity it represents.

These two men are individually responsible for the creation of hundreds of thousands of jobs because of the innovations they brought to the internet (AOL) and to stock brokerage (Charles Schwab Corp.). And their businesses have done more than employ lots of people; they have lowered the cost of internet access and financial services for millions of Americans. These men have done immense good for “less fortunate Americans,” and Ted Leonsis feels insulted by corporate jet demagoguery,

I own 50 hours on NetJets for the rare occasion I do travel by private plane. Does Air Force One charter out? Stop making private planes an issue. This is a tiny issue for us to deal with for our country.

Trying to shackle investment and entrepreneurial activity does the unemployed no good (nor our national debt). And no rhetorical strategy could be more opposed to the Christian principle of solidarity than the vilifying of successful entrepreneurs — the effects of such a strategy on public morality should be immediately obvious.

The corporate jet talking point is meant to stir envy in the hearts of listeners — it’s a trifling proposal that packs maximum rhetorical punch — and government by envy will get you nowhere.

The Manhattan Institute’s Proxy Monitor project is aimed at “shedding light on the influence of shareholder proposals on corporations.” It provides a thorough analysis of proposals made from 2008 – 2011 by activist investors — and believe it or not, only 35 percent of those proposals were related to corporate governance. Most of the shareholder proposals that these companies deal with are attempts to direct the company in a more green or pacific or fair direction, and they come from small shareholders who do this to dozens of companies.

A new report from Manhattan summarizes the trends — the growing social proposals, and how Dodd-Frank has playing into activists’ activities — and the proxy monitor website allows you to look at any shareholder proposal from the last few years. The proposals are enlightening. The Sisters of Mercy of the Americas have submitted proposals to the stockholders of Lockheed Martin and General Dynamics stating,

WHEREAS: Space has served as a sanctuary where, over the years, nations cooperate rather than confront one another. Satellites save lives…

RESOLVED: Shareholders request that, within six months of the annual meeting, the Board of Directors provide a comprehensive report on Lockheed Martin’s involvement in the space-based weapons program, at reasonable cost and omitting proprietary and classified information.

The well-meaning Sisters of St. Francis of Philadelphia, in a proposal to McDonald’s shareholders that made the news earlier this year, requested that,

WHEREAS,

The Affordable Care Act, signed into law on March 23, 2010, included federal menu-labeling legislation requiring the posting of calories on fast food menu boards….

RESOLVED: Shareholders ask the Board of Directors to issue a report, at reasonable expense and excluding proprietary information, within six months of the 2011 annual meeting, assessing the company’s policy responses to public concerns regarding linkages of fast food to childhood obesity, diet-related diseases and other impacts on children’s health.

Many other equally well-intentioned proposals have been filed, including repeated requests by the Sisters of Charity of St. Elizabeth that various pharmaceutical companies restrain their prices to “reasonable levels.” The Unitarian Universalists have requested that Pepsi Co. “create a comprehensive policy articulating our company’s respect for and commitment to the Human Right to Water.”

This is not to mention the numerous environmental proposals made by religious groups, requesting that the Rights of Humanity and of Mother Earth not be violated by carbon emissions and by the use of genetically engineered plants. Take, for instance, this statement from a proposal to Du Pont’s shareholders, concerning genetically engineered crops:

The right to food requires that we place the needs of the most marginalized groups, including in particular smallholders in developing countries, at the centre of our efforts

One might think the Sisters of Charity of St. Elizabeth were unaware that it has been the genetic improvement of crops that has saved millions of the world’s poor from starvation.

We’ll keep you posted on further developments, and the effects these proposals may have on companies’ performance.