CHRISTIAN VALUES AND ETHICS

3 06 2009

 As Christians, how can we live ethically and teach our children and grandchildren to be ethical?

Because of our society’s concerns about the actions of politicians, business persons, and the public in general, more and more attention is being given to the field of ethics.  Organizations and professional groups are adopting ethical standards for their constituents that seek to hold one another accountable and create an atmosphere of transparency around issues of ethics.  Parents are concerned about how to teach their children the difference between right and wrong values. Young people live in a world that most of us could not even imagine a few years ago.  Ethics can be confusing since they are often blurry and changing.  And whereas persons of good will develop a set of standards that they abide, when others break that ethical bond, the tendency of the society is to pass laws to define more fully what behavior is acceptable.  But, is that the answer? 

Ethical Houston seeks to provide an atmosphere of safety and trust to discuss issues of ethics that inform our lives as professionals, parents, grandparents, but most of all as Christians.  As Christians, how can we live ethically and teach our children to be ethical.  Be a part of the conversation and please feel free to comment on our articles or email us at franklinolson@sbcglobal.net

John Donne

All mankind is of one author, and is one volume; when one man dies, one chapter is not torn out of the book, but translated into a better language; and every chapter must be so translated…As therefore the bell that rings to a sermon, calls not upon the preacher only, but upon the congregation to come: so this bell calls us all: but how much more me, who am brought so near the door by this sickness….No man is an island, entire of itself…any man’s death diminishes me, because I am involved in mankind; and therefore never send to know for whom the bell tolls; it tolls for thee.”


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Ayn Rand Gives Capitalism a Bad Name

22 06 2011

 

I am a Capitalist and have been so for all of my adult life.  I own a business and invest in the stock market.  I take advantage of the prevailing tax codes which at one point in my life included the bankruptcy codes.  But I am also a Christian and have tried to not only live my personal life based on Christian principles but also have tried to run my business based on those principles.  I also realize that in order to stay in business I have to make a profit.  A business that does not make a profit will not stay in business for very long and cannot keep people employed or provide goods and services to the public. 

 

Recently, I have become aware of a resurrected philosophy of personal freedom espoused by author and philosopher, Ayn Rand and it gives me great concern, both as a business person as well as a Christian.  She is an avowed atheist, which in and of itself is not an indictment.  There are many atheist who live moral and ethical lives but do not share in a religious perspective of the way the universe works.  What is distressing is her radical philosophy of selfishness.  In her novel, “Atlas Shrugged” her protagonist, John Galt makes this pronouncement, “The world will change when you are ready to pronounce this oath: I swear by my life and my love of it that I will never live for the sake of another man, nor ask another man to live for the sake of min.”  Contrast this with Adam Smith, author of “Wealth of Nations”, “To feel much for others and little for ourselves; to restrain our selfishness and exercise our benevolent affections, constitute the perfection of human nature.”   To be sure capitalism is not just about benevolence.  But capitalism, in order to be successful has to take into account a number of factors, including its relationship with its stockholders, it employees, the market in general, its customers, the environment, and its obligation and relationship with the government.  These relationships are always held in tension but one cannot ignore all of these factors which in the end effect whether an enterprise is successful. Some who supportRandhave used another quote of Smith’s to justify her philosophy of selfishness.

“It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.”  But if one looks deeper into motive we would see that at the base of all our actions is self interest.  That self interest may be her selfish motive or it may encompass our understanding, expressed elsewhere by Smith, that it is in the best interest of society for people to share in the wealth and opportunities of all.  Smith alludes to the fact that we all share in the working of the society and that we have a roll in its success and failure, and that it is directly tied to our “exercise of our benevolent affections”. 

Scriptures are very explicit in our call to be in community and to Love God and Love Neighbor.  ForRand, God is first of all a myth, but at worst God is a vindictive and angry and demanding God.  In Galt’s speech he says, “And then there’s your ‘brotherly love’ morality.  Why is it moral to serve others, but not yourself?  If enjoyment is a value, why is it moral when experienced by others, but not by you?  Why is it immoral to produce something of value and keep it for yourself, when it is moral for others who haven’t earned it to accept it?”  She also believed that there was no such thing as “original sin”.  I would deny that “original sin” in its traditional understanding exists, but I would submit that there is as Dawkins and others suggest, a “selfish” gene that calls us to self preserve.  Throughout the centuries there has been a battle between selfishness and benevolence.  Every major religion has as one of its primary tenets, the value of “compassion”.  These religions basically say that in order for us to live together in harmony with God and our environment, compassion and concern for the other is imperative.  Cultures that hold to the tenets of selfishness soon turn to brutality and the dominance of the few over the many.  And in that philosophy are the seeds of their eventual destruction. 

The same is true with business.  In the short run it may be in the interest of a few dominant persons to ignore responsibility to those that they serve and that serve them, but in the long run they too will pass into oblivion.  To lump capitalism and the blanket condemnation of government asRandand her new followers do, is satanic.  Her arguments based on selfishness and so called “objectivism and reason”, play into our natural tendencies to want to be in charge and live for self rather than acknowledging God’s reign as creator and sustainer of all creation.

Check out the You Tube presentation by Christian conservative Chuck Colson. http://youtu.be/ZhbE8NDTY0c

Do we really need a book that tells us that we need more selfishness?


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The Difference Between Moral Hazard and God’s Grace

28 04 2011

 

If corporations are considered to have most of the same rights as humans should they also be entitled to Grace?

Last summer the Supreme Court decided that corporations had the right to make unlimited contributions to political candidates.  For a number of years labor unions have also been able to make contributions to political campaigns.  This ruling is just another incident where the law has held that corporations have many of the same rights and responsibilities of humans.  Proponents of corporate personhood believe that corporations, as associations of shareholders, were intended by the founders and framers to enjoy many, if not all, of the same rights as would the shareholders acting individually, such as the right to lobby the government, the right to due process and compensation before being deprived of property, and the right, as legal entities, to speak freely. All of these rights have been upheld by theU.S.courts.  On the other hand those same shareholders, employees, and officers have limited liability from suits and actions.  In fact, one reason for incorporating is to limit the liability of those in this corporate association.  This convergence makes me wonder if there is a relationship between what has come to be called Moral Hazard and God’s Grace. With the financial crisis that we’ve experienced in the past two years there’s been a lot of discussion about Moral Hazard.  Massive bailout of banks, insurance companies, and the auto industry have made many wonder who’s responsible for this crisis and that not only should the corporations be punished, but also that individuals within those corporations should have accountability for their imprudent decisions.  So, what is Moral Hazard?

Moral hazard occurs when a party insulated from risk behaves differently than it would behave if it were fully exposed to the risk.  Moral hazard arises because an individual or institution does not take the full consequences and responsibilities of its actions, and therefore has a tendency to act less carefully than it otherwise would, leaving another party to hold some responsibility for the consequences of those actions. For example, a person with insurance against automobile theft may be less cautious about locking his or her car, because the negative consequences of vehicle theft are (partially) the responsibility of the insurance company. (Wikipedia)

 CITI bank is a good example of Moral Hazard occurring over and over because no accountability or responsibility is taken for imprudent, unethical or criminal actions. Citibank was started in 1812 and has been bailed out successive times in its history.  
  In the latest financial crisis other banks and two of our major auto companies were determined to be too big to fail. It was believed that for them to fail would have more far reaching and long term disastrous effects.

So, is forgiveness of debt and poor judgment by corporations, their officials and shareholders sufficient to create situations where we bestow corporate grace on them? 

Biblical Grace can be explained by the following scripture:

Eph 2:4,5, 8-10 (NIV) But because of his great love for us, God, who is rich in mercy, made us alive with Christ even when we were dead in transgressions–it is by grace you have been saved. For it is by grace you have been saved, through faith–and this not from yourselves, it is the gift of God–not by works, so that no one can boast. For we are God’s workmanship, created in Christ Jesus to do good works, which God prepared in advance for us to do.

Somehow it seems a bit ludicrous for me to suggest that God can forgive a corporation even though it’s easy to see how an individual can be guilty of Moral Hazard.  So, what happens when a powerful corporation creates a situation like we faced in the 2008 financial meltdown?  In this case there’s a lot of blaming, hearings and promises of new legislation to remedy the problem.  Occasionally there are a few people who are tried and put in jail, but often after the furor dies down, nothing substantive happens and we’re off and running to our next crisis.  And if you saw the congressional hearings those with the power who were complicit in the crisis didn’t even make an apology.  In many cases the buck was passed to someone else including the government and congress.  Contrast this to the CEO of Toyota who came to the congressional hearing and took full personal responsibility for his company’s lax engineering of the gas throttle installation. 

To me Moral Hazard is tantamount to what Dietrich Bonheoffer called cheap grace.  Cheap grace is the grace we bestow on ourselves. Cheap grace is the preaching of forgiveness without requiring repentance, baptism without church discipline, Communion without confession…. Cheap grace is grace without discipleship, grace without the cross, grace without Jesus Christ, living and incarnate.  Grace without accountability or responsibility.  So, it’s no surprise that as a society whether it’s in business, labor or government we see the equivalent of Cheap Grace.  And it’s no wonder that individuals and other institutions practice a lot of cheap grace.  Whether it’s about being responsible for children we produce, or holding the sanctity of marriage intact or working for an organic and wholesome community, we often seem to think we can leave it to someone else.   We abdicate responsibility and want to blame others or expect to get off Scott free.

On the other hand Bonheoffer also talks about costly grace.  In his case he was talking about the costly grace of standing up against the Nazi’s in Germanyand finally dying in a concentration camp for his actions. As he put it so well, costly grace is the gospel which must be sought again and again and again, the gift which must be asked for, the door at which a man must knock. Such grace is costly because it calls us to follow, and it is grace because it calls us to follow Jesus Christ. It is costly because it costs a man his life, and it is grace because it gives a man the only true life. It is costly because it condemns sin, and grace because it justifies the sinner. Above all, it is costly because it cost God the life of his Son: “ye were bought at a price,” and what has cost God much cannot be cheap for us. Above all, it is grace because God did not reckon his Son too dear a price to pay for our life, but delivered him up for us. Costly grace is the Incarnation of God.

Can we call ourselves to accountability?  Can we call our institutions to accountability?  The price is high and it’s hard to go it alone like Bonheoffer did.  As persons involved with our faith communities we can work together to hold ourselves and our institutions accountable and embrace Grace as the Incarnation of God.


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Aristotle on Politics

20 12 2010

 

 

One of our men’s reading groups at MDUMC has been studying Justice, by, Michael J. Sandel.  Sandel is a professor at Harvard and teaches a course on Justice.  Up to a thousand students pack the campus theater to hear his lectures on the big questions of political philosophy.  The book is a synopsis of the course.  The chapter on Aristotle and politics is particularly interesting.  Some excerpts from the book and attributed to Aristotle and his thinking are as follows:

 “For Aristotle, politics is about something higher.  It’s about learning how to live a good life.  The purpose of politics is nothing less than to enable people to develop their distinctive human capacities and virtues—to deliberate about the common good, to acquire practical judgment, to share in self-government, to care for the fate of the community as a whole”.

 ‘Any polis which is truly so called, and is not merely one in name, must devote itself to the end of encouraging goodness.  Otherwise, a political association sinks into a mere alliance…Otherwise, too, law becomes a mere covenant…”a grantor of men’s rights against one another”— instead of being, as it should be, a rule of life such as will make the members of a polis good and just.’

 In our current American political climate, these words give us a different view of what politics should be about.  Most of us are appalled at the river of vitriolic consternation that is heaped upon us on a daily basis by politicians and media.  There is little semblance of civility in what we hear and for many there seems to be little hope of finding compromise and substantive solutions to our nations greatest problems.   Only about 50% of older voters, the largest voting block, vote, and only about 5% vote in primaries and less than one percent vote in precinct elections. The young and the poor vote even less.   There is a sense that ones’ vote makes no difference and that nothing will change, regardless of who wins.

 And for many in the church there is a sense that politics is dirty and corrupt and discussion of issues should be avoided because it’s not “Christian”.  So we live in our personal and institutional isolation, avoiding engaging in civil discourse.  We adhere to the old adage of,  “in genteel gatherings, don’t talk about religion or politics.”  Even though Jesus was not a political figure, he still engaged in discourse about things important to his community and ergo to all of humanity.  He showed us that we are all beloved children of God and that we are also frail in our humanity but that we are forgiven.  He gave comfort and healed and challenged the dominant culture of those in power.  And further, he showed us that there is a law beyond man’s law and that we should strive to bring God’s law and love into our lives and the lives of the polis.  His message was that all of God’s creation is subject to God’s judgment and love and that isolating self from others, also separates us from God.  I wonder what Jesus would think of Aristotle’s words?—

 “The man who is isolated—who is unable to share in the benefits of political association, or has no need to share because he is already self-sufficient—is no part of the polis, and must therefore be either a beast or a god.”


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Ike Was Right

5 08 2010

 

When I was twelve I became a Republican and interested in politics in general.  Dwight Eisenhower was president and as the grandfather of our country at that time, he inspired me to his vision of the United States.  Historically, he will probably not go down in history as one of our best presidents but for me, looking back, he inspired a sense of purpose for me as a young person and through his vision for us as a country.  In his last speech to Congress he outlined a vision for our country that in some ways has been abandoned and in some ways, over time, has come to reality.  Here are some excerpts from that speech:

  “Throughout America’s adventure in free government, our basic purposes have been to keep the peace; to foster progress in human achievement, and to enhance liberty, dignity and integrity among people and among nations. To strive for less would be unworthy of a free and religious people. Any failure traceable to arrogance or our lack of comprehension or readiness to sacrifice would inflict upon us grievous hurt both at home and abroad.

“In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.

“You and I — my fellow citizens — need to be strong in our faith that all nations, under God, will reach the goal of peace with justice. May we be ever unswerving in devotion to principle, confident but humble with power, diligent in pursuit of the Nation’s great goals.

“To all the peoples of the world, I once more give expression to America’s prayerful and continuing aspiration: We pray that peoples of all faiths, all races, all nations, may have their great human needs satisfied; that those now denied opportunity shall come to enjoy it to the full; that all who yearn for freedom may experience its spiritual blessings; that those who have freedom will understand, also, its heavy responsibilities; that all who are insensitive to the needs of others will learn charity; that the scourges of poverty, disease and ignorance will be made to disappear from the earth, and that, in the goodness of time, all peoples will come to live together in a peace guaranteed by the binding force of mutual respect and love.”

There are numerous lessons to be learned from this speech but the one I want to focus is the line about the “military industrial complex”.   Being an old soldier as he was, he saw the need for having a strong military.  He also observed in this speech that the R and D of the military were often used for peaceful purposes, thereby enhancing the lives of all of us.  But what he was concerned about was that the military would become so strong and unwieldy that it would be difficult to reign in.  We have seen this occur in so many ways.  Since WWII in every war that we have fought, except for Viet Nam, we have always left a large contingency of military in those countries.  In 2009 our military budget was $515.4B with other military related expenditures ballooning the military budget to about 1T.  Through the cold war it may have been important to have these kinds of expenditures and military strategy to fight a large land based war.  With the advent of terrorism, it has become apparent that we are fighting another kind of war that requires different strategies.  More emphasis is being placed on tactical warfare and technology.  Drones controlled in the U.S. are regularly attacking Taliban and Al Qaeda positions in Afghanistan.  We are even using drones for surveillance purposes on our Southern border.

With the continuing explosion of our national debt and the strain that it puts on all parts of our economy, much has been said about how the U.S. needs to cut spending.  But when it comes to making suggestions on where to cut, the military is the last to be mentioned.  The reality is that so many parts of our economy and our regional economies are dependent on military spending.  Some cut backs for closing bases and redundancies have occurred but we’ve also seen examples of the decimation of local economies such as Sealy, TX where a military truck contract held by a British company was moved to Wisconsin. Also, NASA with its $108billion Back to the Moon project, primarily based in Houston and Florida was scrapped.   In the case of the Sealy BAE contract it was more than likely a political payoff or retribution against Texas, but for Sealy it will create hardships for years.  So, government spending for the military dramatically impacts the overall private economy.  The same is true for NASA.  Thousands of jobs both governmental and private industry is at stake.  But we have to ask ourselves, is it scientifically or economically beneficial to maintain this program. 

But military spending is one area that our government might make some dramatic cutbacks.  Not only because of redundancies but also because of the different ways that we will possibly have to wage war in the future.  Suggestions of cutting back are met with deep concern.  It’s almost unpatriotic to suggest cutbacks.  And it’s not just here in the U.S.  What would happen to the South Korean economy if we made a substantial cut back in military spending there?  There is much concern about North Korea and its military interests in getting South Korea back, but many have suggested that North Korea, half the size of South Korea and with less than half as many fit persons to serve in the military, could not mount an all out war since it can’t even feed its own people, much less carry out a war.  And there are strong indications that China does not want to have to bolster the North Korean economy in case of war.

At the end of WWII there was tremendous built up demand for products and consumer technology that had not been available during the war.  Much of U. S. industry was tooled for military production.  And there was a great demand for higher education.  The nation quickly responded to these demands with the GI bill, the retooling of American industry and more consumer products.

 Even though this scenario is not completely analogous there are some similarities with our economy today.  One of the main issues after WWII was the transition from a military economy to a consumer and infrastructure economy.  With over $500.billion in direct expenditures and about $1Trillion in direct and indirect military costs it would seems important to take a hard look at these expenditures and see where we could cut now, where we could transition into peace time industries and where we need to emphasize our future military expenditure efforts.  Even border security could be enhanced by channeling existing troops, hardware, and technology to our borders.  But if our experience here in the Houston area is any indication of the hurdles to a change in direction in military spending, it will be a long, hard fight.


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Walter Cronkite—Where are You When We Need You?

2 08 2010

 

 

I usually don’t make comparisons to the way things are now, with the way things were.  Usually our fantasies about the past are just that—fantasies.  But in the case of news reporting, I think it helpful to compare the reporting of Walter Cronkite in the sixties and the seventies with our situation today.  Cronkite was called “the most trusted man in America” and held the American publics trust for many years even though he did not always tell us what we wanted to hear and sometimes got the facts wrong.  But even when we later learned that his reporting wasn’t completely accurate we still believed that it was an honest mistake and we forgave him.  The other two major networks NBC and ABC were always trying to hold themselves to Cronkite’s standards because he was the standard for ethical reporting. 

  Along the way something has happened that has created a mean spirited and ethically bankrupt journalistic (and I use the term loosely) environment.  This situation is primarily on the cable TV networks and on talk radio.  You can even extend that criticism to blogs (maybe even this one).  Accurate and civil reporting seems to be a thing of the past.  And because there is so much dead air that needs to be filled, we are inundated with the same meaningless or vitriolic material 24/7.  We only get relief early in the morning when the infomercials hit the airways.  Gauged by the stuff that we get during the day, infomercials are a paragon of truth and virtue.  And cable news continually rails about the same subjects over and over, not even giving us a variety of arguments.  How many times have we heard that tax cuts are the answer to creating jobs or that we need more government spending to get us out of the recession.  And the interviews, where they have up to six pundits shouting at each other at the same time, with the so called moderator hogging the mike and talking over the other guests, makes my head ache.  Nothing new is uttered and the information given is usually inane, unintelligible, or cut off by a commercial. 

 To make things worse, we are now seeing these cable stations taking pot shots at each other.  Whether it’s Fox TV shooting at Steven Colbert or Jon Stewart or vice versa, the new form seems intent on attacking each other.  Since I now have to check in with all these shows including Glen Beck, I realize that I’m contributing to the problem.  Even though I’d rather not be in that position, I’ve become addicted.  It’s like going to the Roman Coliseum and seeing the blood sports of the time—they repulse me, but I feel compelled to watch.  It’s sick.

 In a recent Gallup poll of July 28, 2010 it was shown that only 9% of people rated members of congress as having high ethical standards.  Business executives were rated at 12% with journalists rated at 23%.  And even though we have lost trust in these professions, our frustration and anger is fueled by the constant need for ratings and our thirst for blood lust.

 So, why do I keep watching??????


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An Ethical Crisis of Confidence

27 07 2010

 

Almighty God, we confess that we are often swept up in the tide of our

generation. We have failed in our calling to be your holy people, a

people set apart for your divine purpose. We live more in apathy than

in passion born of hope. We are moved more by private ambition

than by social justice. We dream more of privilege and benefits than

service and sacrifice. Help us to make room in our hearts and lives for

you. Forgive us, revive us, and reshape us in your image. Amen 

Nouriel Roubini

  The other day I was watching my stock market guru Jim Cramer on CNBC.  It was a down day in the market and he was railing against the Bears for their pessimism on the stock market.  Currently the stock market is in a very narrow range and actually seems to be slowly drifting down in spite of increased earnings by corporate America.  He was lamenting the fact that the retail investor like me seemed to be leaving the market in droves or at least was not investing as they had done in the past.  He only alluded to the fact that there was a crisis of confidence in the government, international affairs, and lack of confidence in Wall Street itself.  On other programs that I’ve watched recently that talked about the new Fin Regs just passed, there was less than enthusiastic endorsement of the new regulations.  Most of this was aimed at the fact that there was little confidence that these new regulations would make any difference and in fact would give the money merchants new loop holes to exploit.  The growing sentiment among many investors is that the Foxes are in the hen house and are making the new regulations and that everything is about the same as before.  Many people on both the left and the right believe that this is just the first step in our economic troubles.  Nouriel Roubini, author of Crisis Economics and one of those who first predicted the effects of the housing bubble contends that the next world economic crisis will occur in the next two years.  He predicts that there will be a long, painful, protracted economic downturn, evidenced first by deflation and then by hyper inflation. 

 So, what happens to all of us that are poor or middle class that have been living on borrowed money.  Roubini suggests two scenarios.  The first is Keynesian theory and the other is from the Austrian economic school.  With Keynes, the solution to economic crisis is infusion of capital into the economy by government in the form of stimulus dollars and direct payments for unemployment etc.  With the Austrian school approach the answer is “creative destruction” which is allowing the economy to go through the painful destruction of corporations, persons, or institutions that are weak or that have over committed.  The theory is that even though painful, the purging of inefficient and corrupt entities will be shorter and make for a stronger successor.  Roubini uses the term “moral hazard” to explain the behavior of some companies and individuals that take undue risks knowing that someone will bail them out if they get into financial trouble.  He uses Citi Bank as an example of the result of “moral hazard” going back to the great depression when the government bailed them out.  Since then, Citi Bank has been bailed several times because of credit problems due to being leveraged too much.  And who has had to pay for this?  The American tax payer.  “Moral hazard” also comes home to roost with individuals.  Many Americans have leveraged themselves into bankruptcy because they either want it now and easy credit is at hand or we live in a state of perpetual entitlement where our priorities are fixated on the material rather than the spiritual.  And who will suffer the most?  The poor and the young.  Neither Keynes or the Austrians have the whole answer to our situation, but most of us know that change is necessary.  Individual responsibility and self reliance are important but being concerned and committed to the whole is also important. 

 I contend that a solution lies in three areas—the long process of unwinding our debt, the preservation of person’s dignity and worth, and turning to the One that truly gives us meaning.  And the longer we wait to make these painful decisions and changes the more painful it will be.  So where do we place our faith?  Jeremiah and other prophets believed that the answer to our predicament lay in our turning away from the lesser gods of our culture and placing our faith in the God of new life and creation. “Nearly 90 percent of Americans, according to the CIA World Factbook, identify themselves with a religion. But only 12 percent of American adults say faith is a top priority in their life, according to a new study released Monday by the Barna Group.”   It may be charged that suggesting that we turn towards God in these times (as well as in good times) is naïve and impractical.   We’re not ready to give up our little gods and until we do, we will suffer the pain of attachment. 

 “I will surely gather them from all the lands where I banish them in my furious anger to this place and let them live in safety.  They will be my people, and I will be their God.  I will give them singleness of heart and action, so that they will always fear me for their own good and the good of their children after them.  I will make an everlasting covenant with them; I will never stop doing good to them.”  Jeremiah 32: 37-39  

 Jeremiah states that God will gather all who have been banished and will be the God of all people.  I believe that even if there are those who do not accept the presence and influence of God, we are all still under God’s reign.  It is for those of us who believe in that reign to live into God’s purpose.  The outcome may not be what we want, but it will be God’s outcome.


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Ethics and Supporting Small Business

13 07 2010

I almost feel unpatriotic writing this piece.  Having invested in the stock market since I was fourteen and being in business myself, I believe that business should be the cornerstone of our American economy as opposed to big government being the watchdog and driver of economic well being for the average American.  But recently I have become aware of a disparity that needs discussion—the role of big business and small business in bringing our economy back to health. 

 Currently big businesses such as Microsoft, Cisco and Exxon, just to name three, are sitting on huge reserves of cash.  Needless to say with the uncertainty in financial markets in the past few years and the probability that we will see the other shoe drop again in the future, it still calls into question what companies such as these should be doing with their cash.  First of all, big companies need a lot of cash and they employee a lot of people.  But many of these companies in past years have cut back the number of employees.   But we are told that in order to get the economy back on track we need to improve employment.  We’ve lost about 7million jobs in the past few years and are limping along at less than replacement employment.  We’re told that the private sector needs to add jobs.  But where will these jobs come from?  Most large businesses cut jobs in the past recession and are reluctant to add jobs.  One reason is that there is not the demand for their products to justify those increases; which brings us back to cash.  If the cash is not to be used for growing organically, where then will growth in those companies come?  Some suggest that it will come from acquisitions and mergers.  Ignoring questions concerning anti-trust issues (you remember anti-trust don’t you), one consequence in M&A is that often by absorbing competition the acquiring company is not only able to get rid of competition but it’s also able to have a more efficient operation by combining operations which often results in loss of jobs.   Many of these companies are also outsourcing jobs to other countries further creating job loss in the U.S.  In some case the word multi-national actually means non-American. 

 In the case of the “too big to fail” banks, many of them are doing extremely well considering they have been able to borrow money for 0% and lend it out at much higher rates of interest.  This has been great for U.S. taxpayers who are hopefully getting much of their advance of funds back for helping bail them out.  But what of those smaller banks that have gone under and have been sold to bigger banks.  Again we often see that as a part of cost cutting, branches are closed or consolidated and persons laid off.  So, the big get bigger and to what end?—more service to customers? More dividends to shareholders?  More taxes to local and federal governments?  So, what’s the answer?  The proposed new bank regulations seem to indicate that the game is rigged.  In spite of all the gnashing of teeth about change, the indication is that not much substantive change will occur.  And there are many pundits that believe that within a couple of years the banking system will be back in trouble.  And pundits can’t decide whether we’re in for massive inflation or painful deflation.  My sense is that big business and big banks will do what is in the best interest of big business and big banks and if it contributes to job creation, so be it, but I wouldn’t count too heavily on them getting us out of the recession.

 We keep hearing that the answer to getting out of the current recession is the creation of new small businesses and in small business hiring more workers.  I agree.  But there’s not much encouragement for this.  Everything from local restrictions and regulation of small business, future healthcare liability, lack of availability of financing, and even cracking down on immigration policy are seen by some as hampering job creation.  In a recent poll of small business by the Biz Roundtable, a very pessimistic future was painted by those interviewed.  There just doesn’t seem to be much excitement in hiring more people even if financing is available when there doesn’t seem to be much of a market for the goods and services produced by these companies.    

 Currently there are proposals being bantered about concerning creating tax credits for hiring new workers and tax credits or accelerated depreciation for purchasing new equipment.  When these have been done in the past they seem to have had a positive impact on the economy.  Another possibility would be to have a lower effective income tax rate for small businesses.  But at the end of the day, the most important consideration for small business is the ability to get into business and to stay in compliance with the myriad of laws and regulations, both local and federal, which impedes the small business to function and to be the engine of job creation that it’s been in the past.  Add to that, small business’ often not being able to compete with big business’s ability to sell for less and the consumer’s perception that they can get it cheaper at the big box store and that it will be in business a lot longer than the small local operator, the deck seems to stacked against small business.  You may wonder what all this has to do with ethics.  For we consumers, there are some fundamental issues that we control.  Who will we support? Are we willing to support local small businesses, even when prices may be more than at the big box?  Small business needs to do its part by being more customers focused and offer something that big businesses can’t always add and that’s relationships with the customer.    Many people, particularly in smaller communities around the country are answering this question by coming down on the side of home grown businesses. They question the consequences of having the Wal Mart come into their town that undercuts local merchants that result in Main St. becoming a ghost town? In a city like Houston more often than not, we don’t have the same relationship with small businesses that are available to small town dwellers.  It’s just easier to go to the national company rather than seeking out a local business.   . 

 I believe that we should encourage people to start small businesses and for our communities to enhance the potential of these job creating engines.  So, my suggestion to us all is to support our local small businesses and support regulations that will enhance those business persons efforts. 

 What small businesses do you support?


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I Don’t Care Whether He’s a Christian; I Just Want a Good Dentist

6 07 2010

 Several years ago a good friend of ours moved to north Dallas.  She began to meet people in her community and as is the case in moving to a new place, she wanted referrals to service persons, such as doctors, dentist, plumbers, etc.  She was somewhat flabbergasted that when she would query her friends about such referrals and they would invariably answer, “Oh, Dr.  X is a Christian, you know.”  She said that it was not just one new friend that responded this way; it was almost all of them.  It was as if their primary criteria for selection were that the person was Christian.  Maybe I don’t run in the right circles to get this kind of response here in Houston or maybe Dallas is just that different.  But our friend’s response to us was, “I don’t care whether he’s a Christian or not, I just want a good dentist.” 

One of our Food For Thought attendees said she had the same reaction when she went into a doctor’s office and there was a cross in a prominent place in the waiting room.  I’ve also talked to numerous people who are turned off by businesses that have the Christian fish logo on their business advertising.  I have often been told that these businesses are some of the worst offenders with poor ethical standards that they’ve confronted.  Which brings us to another question?  How would one respond if the professional or business advertised that they were a Jewish lawyer, a Hindu cardiologist, a Muslim accountant or a Buddhist psychotherapist?  When we make choices of businesses or professionals that we’re going to support based on religious preference, it probably doesn’t have a lot to do with competence.  It’s probably more about trusting.  If we are Christian and white, we may feel more trusting towards someone who looks like us and has a similar religious background.  And religious preference doesn’t have a lot to do with competence.

My oldest son has had cardiac issues from birth.  He has had two aortic valves replaced with the first operation almost being fatal.  The second time he was to have the valve replaced, something miraculous occurred.  His cardiologist, an Indian who Mark had seen for a number of years and who had a great relationship with was ready to assist in the valve replacement.  But the night before the operation he had a dream that made him decide to do one more test.  Not a very scientific approach, but one that was fortuitous.  He decided to run one more test and found that Mark had a huge tumor on his heart.  Mark was finally diagnosed with Non Hodgkin’s Lymphoma.  Mark was then first treated for the lymphoma and then some months later had the valve replacement.  Both the doctor, a Hindu and Mark a Christian believed the dream was more than a dream. 

I’d rather have doctor or do business with someone that is not a moral cipher and only sees persons as objects to be cut on or used to enhance ones bottom line.  Even persons of faith can have a disconnect between what they profess in worship and their actions away from worship.  The ending scene in Godfather is a dramatic example of this disconnect where Michael Corlione is having his child Christened while at the same time he is having all of his enemies killed.  This is a theatrical extreme that for most of us is not that pronounced but the film makes the point that as humans we have the ability to blot out and rationalize what we’ve been taught as the difference in right and wrong and our selfish, bigoted and brutal self will.

My point is that faith makes a difference, both for the patient, client, or customer and the professional or business. Our faith should inform our ethics and actions and our understanding of our role in God’s universe.  We have to be aware of the result of our actions on what the East calls Karma.  But whether we advertise our faith, is another issue. 

One company that has had great success in advertising its faith is Christian Brothers Automotive, a franchise company servicing seven southern states with fifty four centers.  Founder Mark Carr started the business in 1982 with a vision that Christian values should inform the way he and his franchisees do business.  He limits selling franchises to born again Christians which in turn has the added benefit of developing trustworthy employees.  For me personally I’d like to think that the company or professional that I go to has a faith, even if not necessarily mine, and that sees me as a child of God and that I should be treated with respect and care. 

The current best example of a company that creates a covenant between operators and customer is Chik Fil A.  The company was begun in 1947 by Truett Cathy.  It now has 1430 stores and does over 2 billion a year in sales and is still a private company.  In order to receive a franchise a person only has to pay $5000. and be willing to work full time in the business.  The parent company participates 50-50 in the profits.  There are over 25,000 applications a year for about 100 stores.  The company is based on Christian principles of stewardship and is always closed on Sundays.   If you’ve ever been to a Chik Fil A before you know that there is different atmosphere about the place;  And the foods good too.

http://video.foxbusiness.com/v/3895162/chick-fil-as-philosophy-on-business?playlist_id=87185

And for me as the customer, I should also see those who serve me as being human with frailties and concerns that may be making them have a bad day.  And that if trust and covenant are broken that I deal with my anger and disappointment appropriately and try to rebuild the relationship, even though I may not use that company or person in the future.  I don’t know about you, but that’s really hard for me to do when I think someone has taken advantage of me.


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Gotcha

1 07 2010

 

Last week we had our Food  For Thought luncheon meeting on ethics at Christ Church Cathedral.  Treebeard’s food is great and even though we didn’t have a big crowd, we had some great conversation on covenant and business ethics. (by the way you’re invited)  Bob Thurmond the program director of the Cathedral Justice Project was talking about how American business seems to have evolved to companies trying to make contracts so onerous that the best description for them is “gotchas”.  I can personally attest to the complexity of real estate contracts that twenty or thirty years ago were much simpler than today.  In spite of that complexity as a nation we’ve experienced the biggest housing meltdown in U.S. history.  It raises the question of why should contracts so complex if they’re not worth the paper they’re written on.  In addition to the housing bubble numerous large commercial properties have been foreclosed on, some of them with billion dollar values.  I realize that we live in a much more complex world and that we all have to deal with more regulation, whether it’s environmental, financial regulation, safety, or a myriad of other regulations that make everyone want to CYA. 

 I’m not so naïve that I believe that we’re going to turn the ship around in a hurry, if ever.  But Bob began talking about the difference in American and Japanese business.  This really picked my interest in as much as I have been involved in the martial arts for fifty years and have come to appreciate much about the Japanese culture, while at the same time being mystified by it.  For Americans, including myself, the Japanese ethic is quite enigmatic.  On the one hand it is very focused on the group and the needs of the group.   On the other hand it is very hierarchical with deference made to those who are older or who have a higher rank in the social order.  I particularly like the “older” concept.  Dr. W. Edward Deming helped revolutionize Japanese manufacturing with what he called “quality circles” or Kaizen.  These are small groups in a manufacturing plant who meet formally and give suggestions on ways to improve production, safety and other issues to improve the company.  It’s purpose is to generate and implement employee ideas.  Now, here is the interesting part.  The employees don’t get bonuses for their suggestions.  The suggestions may result in changes in the plant itself that make employees work environment better but the primary focus in on the organization.  Deming’s ideas have been replicated in the U.S. but with a lesser degree of success since in Japan there was not the monetary incentive to improve. 

 This is just one difference in Japanese business and culture.  This does not mean that Japanese business and culture do not have flaws.  Over the years there have been numerous scandals in both government and business.  But often the outcome is much different than in the U.S.   Whereas in the U.S. the CEO who’s caught in a indiscretion may try to blame others or claim ignorance.  But in Japan, the hierarchy runs in both directions.  I may be low in the totem pole, but the Sensei (big guy) is responsible for all the people below him and the consequences that are created under his watch. He is the one that is expected to “fall on his sword” if things go wrong and in the old days that was literally what was expected of him. 

 Compare some of what CEO Akei Toyoda and others said in testimony before congress:

 ”Especially, I would like to extend my condolences to the members of the Saylor family, for the accident in San Diego,” said Toyoda in his testimony. “I would like to send my prayers again, and I will do everything in my power to ensure that such a tragedy never happens again.

“Since last June, when I first took office, I have personally placed the highest priority on improving quality over quantity, and I have shared that direction with our stakeholders. As you well know, I am the grandson of the founder, and all the Toyota vehicles bear my name. For me, when the cars are damaged, it is as though I am as well.”

And here is a statement made by a key company executive James Press:

“Toyoda is dealing with two big problems. He only took control of the company last year. The vast majority of decisions that are connected with the recall were made by a previous regime. On Feb. 23, Automotive News published part of an e-mail from former Toyota Motor Sales President James Press, who also became the first American to serve on Toyota’s management board in Japan before he left in 2007.  Press called the management that preceded Toyoda “pirates.”

“The root cause of their problems is that the company was hijacked, some years ago, by anti-family, financially oriented pirates,” Press said, referring to the company’s move away from Toyoda family leadership over the past decade. “They didn’t have the character necessary to maintain a customer-first focus. Akio [Toyoda] does,” Press told Automotive News. Press left Toyota to be vice chairman of Chrysler, a post he left last November.”

Can you imagine an American or British CEO making statements such as this (will BP be the exception).

 Japanese business and culture are changing to conform to the ‘gotcha’ philosophy in individualism and lack of personal accountability. The Toyoda story is a case in point.  But maybe we can take some lessons from the Japanese.  Loyalty and honor are important to the working of a society.  In Japan the expectation is that every person will play their part in making things work.  And if you don’t play your role the whole system will fail.  It is not only a dishonor to you and your family but also to your ancestors who still have a place in your life and the life of the society. 

 The question that I grapple with is can we as Christians mediate those differences between the good things about our culture and the good things about the Japanese culture.  Being honorable and loyal to one another is important but if we fail, do we have to “fall on our sword”.  Or can we hold ourselves and others accountable and admit our shortcomings while at the same time practicing “grace”?  Can we acknowledge that the group is important but the individual still has a part in making the system work and allowing freedom to prevail?  What do you think?


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Relational Banking and Other Anachronisms

21 06 2010

 

 

Every year around Christmas we are privileged to see the holiday classic, “It’s a Wonderful Life” starring Jimmy Stewart.  It’s such a classic that for several days you can almost find it playing on some channel 24/7.  So, why has this film become an icon.  As movie reviewer James Berarninelli says, “It’s a Wonderful Life has earned its legion of followers because it effectively touches upon one basic truth of life that we all would like to believe — that each of us, no matter how apparently insignificant, has the power to make a difference, and that the measure of our humanity has nothing to do with fame or money, but with how we live our life on a day-to-day basis. It’s a Wonderful Life asks and answers a question that all of us think of at one time or another: “What would this world be like if I had never been born?”

 But others have said that it has to do with a simpler time and small town American values that we long for to return.  I can certainly relate to both of these ideas and would like to focus on the latter.  I remember as a young business person going to my neighborhood bank and saying hello to all the bank VP;s and the bank president.  The tellers had been there forever and knew me by name.  The bank was an institution that wasn’t just about making money.  It was a part of the community.  That bank no longer exists, having been bought out, merged and folded into a conglomerate bank.  Today, the idea of the neighborhood bank and the idea of “relational banking” is a thing of the past.  To even put money in the bank through the drive through window is an ordeal, sometimes requiring that I go into the main branch office to check to see if my signature matches the one on the signature card.  Even then the person I visit with doesn’t know me and I don’t really care about how their day is going since they probably won’t be there next time I’m in. 

 Banking is not the only type of business that has changed and become dehumanized.  Whether it’s my local pharmacy, the giant Wal-Mart or the grocery store or gasoline store, there’s not much in the way of “relation building”.  We have TV commercials that tout the personal service aspect of some businesses but the reality is that there is very little to substantiate those claims.

 This has a profound influence on our ethics and values.  In “It’s a Wonderful Life” people rallied around George Bailey and his family as George and his father before him had done.  There was a sense of community that existed that said that people’s lives are important to the community at large and that we are called into that community to be supportive and loving.  Today there is a distrust of the other and we are either afraid of our neighbor or we live in isolation from neighbor and see those we serve or are served by as objects rather than as loved children of God, worthy of our concern and affirmation.

 If the world of George Bailey ever existed we can’t go back there and we have to realize that, that time may have never existed.  We can hope that we can build that kind of community in the future where we live supporting one another and reconciling to one another.  These realities make it important to build relationships that affirm our neighbor, while at the same time taking responsibility for our thoughts and actions.  And most importantly, we can see the face of God looking at us as we encounter the other.


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