The article in the url below argues that public disenchantment with Wall Street as a result of the financial crisis risks spreading into a general resentment against business. This, the author suggests, could result in legislative backlash that impedes the recovery and set-back “American capitalism” for years to come. The author highlights three issues on which he thinks business leaders need to speak that can help turn public opinion back in businesses’ favor:
“… executive pay; the need for an updated "social contract" that fits 21st-century realities; and a strategy to make service jobs that cannot be offshored a path to the middle class. … failure to address them will fuel a backlash that affects every company's licence to operate. Let us take them in turn.”
In short: First, on executive pay, there needs to be a strong correlation between risk, performance, and reward; second, a more complete social contract allows firms to adopt responsibilities, while also tackling intractable social problems, such as healthcare provisions; and, third, building sustainable jobs at home that emphasize highest services and quality over lowest cost will help ensure the public views business as part of the solution, rather than one of the main causes of the problem:
“Chief executives face a choice. They can help bolster workers' security, or they can hire more security guards and hunker down. … A group of 10 far-sighted business leaders who sense the threat (and the opportunity) could get this ball rolling. With business nearing the brink, who will answer the call?”
Take care
David
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther/
Business needs to speak out against greed
Matt Miller
967 words
21 April 2009
Financial Times
USA Ed2
11
http://www.ft.com/cms/s/0/2717447c-2dda-11de-9eba-00144feabdc0.html
