Posts tagged with: business

This morning, the New York Times reported that a broad bipartisan effort of senators convinced Democratic leadership to drop provisions in the Employee Free Choice Act (EFCA) that would have weakened the right of workers to hold secret ballot elections to determine whether or not they would unionize.

EFCA had become known by many of its opponents as the “card check bill” because of its central proposal: if over half of workers at a firm signed cards authorizing a union to represent them, then there would be no federally-supervised election. An election would only happen if over a third of the workers specifically requested it before the card check benchmark was reached.

It is important to look at the different themes of Catholic social teaching regarding labor unions in order to understand the immorality of this suggestion. Pope Leo XIII’s social encyclical Rerum Novarum asserted the rights of workers to form associations in the late 19th century, saying that “to enter into a ‘society’ of this kind is the natural right of man.” Centesimus Annus, a social encyclical from Pope John Paul II, reiterated that the right to unionize exists “because the right of association is a natural right of the human being, which therefore precedes his or her incorporation into political society.” It is the right of free association that gives workers the right to unionize.

Free association among workers cannot be respected under card check schemes. EFCA had the potential to force millions of workers into unions that they did not want. Unions may be correct to argue that some businesses intimidate their workers into opposing collective bargaining, but the unions are guilty of intimidation, too. Unions can also have a direct impact on politics, too, by donating member dues to campaigns and using staff as campaign volunteers. Unions are also exempt from anti-monopoly laws, which allow them to exert far greater influence on the market than any business can.

Actions like these put many labor unions out of touch with Catholic social teaching. Pope Leo XIII warned that unions could seek to abuse their civil power by using it to harm workers and gain excessive power: “There is a good deal of evidence in favor of the opinion that many of these societies are in the hands of secret leaders, and are managed on principles ill-according with Christianity and the public well-being; and that they do their utmost to get within their grasp the whole field of labor, and force working men either to join them or to starve.” It is not unions in and of themselves that Catholic social doctrine supports; it is the right to join one if a worker so desires that is natural and good.

Workers have the right to join labor unions, and many find that it is in their best interests to do so. Many others disagree. Opposition to unionization is not just found in corporate boardrooms. The majority of American workers do not want to unionize. Some do not want their dues going to interests that they oppose. Others want to negotiate with their bosses directly over the compensation they receive. Still others do not want unions to hamper the competitiveness of their employers, as has happened in Detroit in recent years. Only secret ballot elections can determine whether or not workers find unions to be a worthwhile endeavor, no matter how much unions may protest that they do not get exclusive access to workers in order to make their points.

Preserving the right to secret ballot elections is the best way to ensure that all workers have the right to associate according to their own desires. Senators Blanche Lincoln, Mark Pryor, Tom Harkin, and their colleagues should be commended for honoring what Pope Benedict XVI, writing in the social encyclical Caritas in Veritate, calls the “valid distinction between the respective roles and functions of trade unions and politics” that “allows unions to identify civil society as the proper setting for their necessary activity of defending and promoting labor.”

President Obama took time out over the weekend to respond to this week’s PBR question: “Let me assure you in the days ahead my administration intends to do to every industry in this country exactly what we are doing to the automakers.”

Blog author: jballor
posted by on Friday, April 3, 2009

Sports are still able to foster human virtues, especially classical virtues like courage and fortitude. Like any good thing, sport all too often risks becoming an idol, not because of any fault within the institution itself so much as the fault lying within each human participant.

If there’s anything that distinguishes modern sports from classical antecedents, I suppose it would be the wealth that is often attached to high-profile sports today. You might call it the professionalization of sport. Yesterday’s cover story in USA Today examined the extent to which nominally non-professional sports, like college basketball, have become major industries. This is even more the case with overtly professional sports. It seems to me that in the ancient world, there was a great deal of glory or prestige that was associated with victory. But in addition to that aspect of sporting endeavors, we have the added prospect of great wealth for those who excel at golf, tennis, basketball, or football.

Glory may have been an appropriate motivation for pursuing sports in the ancient world, although there’s no doubt that this kind of fame-seeking can become idolatry in its own way. But I’m sympathetic to the view that sports’ ability to foster human virtue is at least potentially compromised by the additional motivation of wealth-seeking. For every athlete that excels today from a deep “love of the game,” there are a dozen others who are in it just for the paycheck.

The third week of the CRC’s Sea to Sea bike tour has been completed. The third leg of the journey took the bikers from Boise to Salt Lake City, a total distance of 444 miles.

The “Shifting Gears” devotional focuses especially on the theme of discipleship, of following Jesus in this third week. One way in which we follow Jesus is in the community of disciples. And as the day 16 devotional reads, “You can share everything and take turns doing the heavy work, but without forgiveness the fellowship will never last.” This gets at what differentiates what has been called the “communitarianism” of the early church from the secular visions of a socialist utopia. Only the church can rightly understand the realities of sin and forgiveness and their consequences for social life.

Day 17 quotes 2 Corinthians 2:17, “We do not peddle the word of God for profit.” This is an important verse, because it reminds us of the primacy of spiritual realities to the gospel message. The devotional puts this contrast starkly: “We are not like the giants of the cosmetic industry, pushing chemicals for profit. Rather, we peddle an ancient formula, ‘fragrance of life,’ simply as a celebration of God’s grace.” I appreciate the rhetorical power of this kind of juxtaposition, but I fear that it misses the point. Paul isn’t deriding business and the pursuit of profit in its own proper sphere. Instead, he’s warning against allowing the principles suited for one sphere (business) to invade another (church).

To the extent that it is the successful business leaders who are implicitly understood to embody religious and spiritual discernment and leadership, this text is a much more powerful witness against the church being run as a business than it is against business as a profit-driven venture. Even so, the devotional speaks rightly when it says, “Paul’s point is that we don’t speak of faith to gain our own advantage.”

The week concludes with a trip from Idaho to Utah. The prayer for day 20 notes that “Utah ranks first among all states in proportion of income given to charity by the wealthy. Today thank God for their generosity, and pray that the money will be used wisely and effectively by these charities.”

To get involved in giving to effective charities, visit the Samaritan Guide, and take a look at the charities that are working in Idaho and Utah, including Boise’s SAFE Center and Salt Lake City’s Spiritual Training Program, both rated “excellent” for their Samaritan Guide entries in 2005.

Richard Baxter, the seventeenth-century Puritan identified by Max Weber as embodying the Protestant ethic of “worldly asceticism,” once called for chaplains to be sent into places of work for the conversion of sinners.

In a 1682 treatise titled, How to Do Good to Many, Baxter pleads with “Merchants and Rich men” to provide for “some able zealous Chaplains to those Factories” situated in lands where the Gospel had not yet taken root. He urges chaplains “such as thirst for the Conversion of sinners, and the enlargment of the Church of Christ, and would labour skilfully and diligently therein.”

Our local paper, the Grand Rapids Press, had feature story on the rising demand for workplace chaplains recently, “Chaplains come calling in the workplace.” Today’s workplace chaplain isn’t so much a missionary as a pastoral care counselor (they’re called “care partners” by Gordon Food Service), but I think Baxter would approve.

After all, providing such pastoral care can be a kind of mission field, too, even in a Christianity-rich context like West Michigan. Greg Duvall of Marketplace Chaplains USA says, “You can get this sense that there’s this Christian ‘bubble,’ by the number of churches or the region’s history, but if you just look around, there are a number of people who are not connected through church or don’t have a growing faith.” For folks who don’t worship regularly or aren’t connected to a church, a workplace chaplain can provide a connection to a faith in a time of need or trouble that can help rekindle the spark.

I would expect seminaries and schools offering ministerial training to increasingly focus on workplace chaplaincy as a calling, not just for retired pastors or temporary workers, but for full time pastors too. Presumably those pastors should receive specialized training, part of which would be education in how business works. And that could be a very fruitful place for dialogue between the oft-divided worlds of church and business.

Blog author: jballor
posted by on Thursday, January 31, 2008

What do you look for when you are searching for a job? A growth industry? A healthy bottom-line? A positive corporate culture? Some combination of the above?

Fortune magazine recently rated the “Top 100 Places to Work.” Not surprisingly, at the top of the list is Google, which not only is dubbed the “millionaire factory” because of its generous stock option packages and a matching top tier share price, but because of the innovation associated with its workplace. Employees are encouraged to spend a good chunk of their time focusing on their own “pet” projects.

But second on the list is a Michigan-based company, Quicken Loans. What makes Quicken a great place to work? “Ethically driven” is what one employee calls the online mortgage lender: “It avoided the subprime crisis by sticking with plain-vanilla loans.” You don’t need to be a “social entrepreneur” in the latest sense of the term to be “ethically driven.”

So what connection is there between the top two companies on Fortune‘s list? Google’s well-known motto is: “Don’t be evil.” You might call that the “silver rule” of business ethics. (The “golden rule” would be a positive statement like, “Do be good.”)

To the extent that Google and Quicken embody a way of doing business that emphasizes both profits and ethics, we can see how in the long run ethical business makes the most economic sense.

Also check out Christianity Today‘s annual feature, “Best Christian Places to Work.”

Pat Sangimino wrote an article for the Wichita Business Journal titled, “Documentary seeks to dispel negative images of entrepreneurs ” (subscription required). A premiere of The Call of the Entrepreneur took place in Wichita, Kan., on November 14th. Sangimino noted in his piece:

Some consider Wichita to be the Midwest’s cradle of entrepreneurship. Evidence of that is the original Pizza Hut building, which was moved to the Wichita State University campus in 1984 to serve as a reminder of what can happen to those who dare to dream and are willing to take a chance.

The screening was sponsored locally by the Flint Hills Center for Public Policy. The Center is a think tank dedicated to the constitutional principles of limited government, open markets, and individual freedom and responsibility.

Another noteworthy quote from the article:

The documentary’s three examples of business success could easily be compared with those of Dan and Frank Carney and Pizza Hut, Tom Devlin and Rent-A-Center or Jack DeBoer and his hotels, among others — tales that have become part of Wichita’s enterprise lore.

In my three and a half years as a student at Asbury Theological Seminary, I encountered more anti-capitalist rhetoric than I may have experienced in my entire life up to that point. Before Asbury, I attended a state and secular university, Ole Miss, where socialist propaganda was largely out of fashion.

Acton President Rev. Robert Sirico is quoted in a new piece titled, “The Religious Left, Reborn” by Steven Malanga. The article appears in the autumn issue of City Journal. Rev. Sirico notes the influence of unions and left wing clergy on young seminary students:

Younger seminarians may be particularly receptive to such experiences, Seminarians are preaching all the time, and if they don’t have an economic background, it’s easy for them to fall into the fallacy of the Left that our economy is a zero-sum game that demands conflict between business owners and workers.

This influence was especially evident at Asbury, which is an evangelical seminary and originally founded to combat the rise of liberal theology. Some new students at the school began to associate justice with wealth redistribution. This transformation in thinking often occurred after students were required to take a required class Kingdom, Church, and World. In this class, business, profit, entrepreneurs, and chief executive officers were often used as examples of anti-Christian behavior.

The free market was also seen as a system that subjugated labor, and especially third world nations. On occasion in Kingdom, Church, and World, I tried to defend the free market and was rebuked by my professor who told me, “Ray … capitalism is an enlightenment construct and not a Christian value.” Fortunately, this rebuke did not convince me that a command economy or a socialist-Marxist construct was better than the free market.

Another issue raised in the City Journal piece is the use of clergy by labor to advance its agenda. Many people who attend a mainline protestant church in America are very aware of this tactic, especially if they hold a differing opinion. Malanga declares:

The Wayne State University Labor Studies Center’s “activist handbook” advises living-wage campaigns always to put religious leaders out front. “As soon as you have clergy arguing for something called a ‘living wage,’ you’ve lost the battle if you’re representing businesses.

Malanga does an exceptional job at pinpointing the real reason why poverty plagues many people in the U.S. Quoting Michael Novak, he notes:

By contrast, observes Catholic neoconservative writer Michael Novak, research demonstrates that the way out of poverty for most Americans is to make a few simple life choices. “Some 97 percent of those who complete high school, stay married (even if not on the first try), and work full-time year-round (even at the minimum wage) are not poor,” Novak points out. “Nearly all poverty in the United States is associated with the absence of one or more of these three basic accomplishments”—not with insufficient social spending or a lack of economic opportunity.

Family stability, education, and a sound moral fabric can never be overestimated as elements necessary to escape poverty and create economic opportunities. What was so perplexing about the economic views of some students and professors in seminary was that they did not necessarily regard socialism as a negative. The Church would be wise to do its best at helping and encouraging those in need, instead of rallying to the aid of class warfare tactics already deeply entrenched in partisan politics.

Erika Andersen reviewed the “The Call of the Entrepreneur” for Human Events in a piece titled, “Entrepreneurship Preserves Life as We Know It.” The Call premiered last week to DC audiences at the E Street Cinema, as part of the Renaissance Film Festival.

In her article Andersen noted the international interest in the film:

Though it initially seems like the tale of the American dream, “The Call of the Entrepreneur” is an international story and is now being translated into Spanish and other languages. In fact, the film experienced its largest premier audience in Nairobi, Kenya with over 450 attendees.

Andersen also easily recognizes the importance of calling, or vocation, in business and in free markets:

The stories restore faith in entrepreneurs’ ability to build lives, strengthen nations and economies as well as fulfill God-given destinies. The film denounces the myth that capitalists are self serving, arguing rather that they are almost wholly devoted to others.

Human Events is one of the oldest modern conservative publications, and the one that President Ronald Reagan called his “favorite newspaper.”

Do you ever walk into a business and see a license on the wall and wonder if that specific industry really needs to be licensed by the state? I know I have thought that, if just a few times. John Fund of the Wall Street Journal looks at how licensing laws hinders low prices and competition in the marketplace. In a piece titled, License to Kill Jobs, Fund also explains how over regulation has stymied job growth and the ability of new entrepreneurs to become more self reliant.

Fund also notes in his column:

In the 1950s, only about 4.5% of jobs required a license to work. Today, that proportion is more than 20%. Many of the jobs that require a government stamp of approval don’t involve health or safety. Depending on the state, you need a license to be a hair braider, florist, auctioneer, interior designer or even fortune-teller.

The cost of the education for the license also hurts those who may have the necessary skills but can’t afford to meet all the requirements. Furthermore, sometimes the licensing requirements have little to do with the relevancy of the actual work performed. Another aspect Fund looks at is the arbitrary nature and requirements from state licensing, compiled by a major study by the Reason Foundation. California requires 177 specific business types to be licensed, while Missouri requires only 41. The “Live Free or Die” state of New Hampshire, requires a walloping 130 licenses for specific businesses types.

Another interesting point Fund makes is the licensing requirements hurt the very consumers it’s meant to protect. Fund notes just a few of the facts from the Reason Foundation study:

The higher prices such licensing bodies impose for services can also hurt consumers by creating incentives to do dangerous jobs themselves. “Electrocution rates are higher in states with strict electrical licensing requirements, as more consumers risk performing their own electrical work,” the study notes. “Similarly, states with stricter dental licensing laws also have the highest incidence of poor dental hygiene.”

In the Wall Street Journal piece, the author also declares how in some instances the courts have stepped in and found some of the licensing requirements completely unnecessary, and additionally acts as a regulatory infringement on the right to earn a living. Fund also declares, “Some courts are even citing the 14th Amendment’s due process and equal protection clauses in striking down protectionist government regulations.”

Which makes one wonder all the more: Are the over-zealous requirements and so called need for licensing helping the consumer or just perpetuating higher prices, and lack of competition, which can result in inferior products and service? Obviously licensing in some classes of business are needed. But does everybody, in say an interior design or the florist industry need to be licensed? There are large and powerful lobbying groups able to protect and strengthen certain businesses from more competition, but in some cases little help for newcomers trying to break into the market. In addition, we often overlook just how much the market can regulate itself.

It all reminds me a little bit about the stories you see in the news print and media about young children getting their lemonade stands shut down by bureaucratic governmental standards . Concerning the crackdown on lemonade stands, where are the “It’s For The Children” speeches when they are actually needed?