Archive: Opinions

To The PointThe blame for the current economic crisis can be placed on numerous institutions. Banks, corporations and even Congress share responsibility for the mess we find ourselves in. Yet among all of these suspects, the majority of blame falls directly on Corporate America.

At one time in our nation's history, the concept of the "common good" represented a cornerstone in the world of business. Society stood for more than a collection of individuals pursuing their own self interest. Profits were important, but everyone in the business community shared an interest in the well being of society. Individuals were not viewed as merely consumers. Corporate America respected individuals as people, expressed concern about their welfare, and treated them with dignity. 

 

In the last 25 years, all of that has changed. Corporations have redefined their responsibility to society. The individual-the human person- has been replaced by the consumer. To consume is regarded as patriotic while to consume to excess is seen as socially responsible. Businesses and banks encourage this behavior by presenting moral and ethical contradictions, arguing that greed and excess consumption are simply aspects of human nature. In their brave new world, fiscal responsibility and sound financial planning are for fools.

Leaders of Corporate America are rewarded for their successes in abandoning corporate responsibility and spreading their new doctrine of excess consumption. Not long ago, the average CEO of a company received an annual salary of 40-50 times that of its average worker. Today, that number has jumped to well over 1000 times.

 

CEO's have received yearly salaries and bonuses that have shocked even the most cynical among us. In a recent article, the New York Times reported that Kenneth D. Lewis, the chief executive of Bank of America, took home more than $20 million in 2007. Of that, $5.75 million was in salary and bonuses. At a time when he was asking for federal assistance from the $700 billion economic bailout, most Americans expressed shock and anger and questioned how much would actually go toward CEO compensation.

 

This shameful behavior must and should stop. Greed is not good. It is harmful, and if left unchecked, will plunge us deeper into our economic crisis. All of us, from the President and members of Congress to we the people, must call on Corporate America to renew its commitment to corporate responsibility. Perhaps that is why the President has proposed a $500,000 limit on executive pay for those seeking money from the bailout fund.

 

With nearly 7.5 million Americans unemployment and millions of others facing economic uncertainty, the CEO's can no longer ignore what they have created. They must redirect their expertise and experience toward the common good-the overall well being of this country. This is their responsibility and duty as leaders. Anything less is unacceptable.

 

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