In the past few classes we have learned about the characteristics and organizational behaviors of ethical and even virtuous enterprises. We have learned about organizational virtuousness:
· Businesses that move from avoiding doing harm to those that serve and respect their customers and the world around them.
· Organizations where people aspire to be at their best and bring it to work every day.
· Organizations with core set of values, aspirations and organizational goals that form the bedrock of their business.
· Businesses that actively encourage their employee to do good things at the workplace, in the community and for people around the world.
I was lucky to have worked for a company that I believe in my heart did all of those things (I would assume still does the best that it can given the circumstances). The thing that ENRAGES me, however, is that so many from Wall Street to Capital Hill to Silicon Valley want to see that company die. That company is General Motors.
Now I know that GM is a scapegoat for many:
· Wall Street investors want it to go bankrupt because GM has destroyed so much investor and lender value in the last 30 odd years.
· West coast enviro-wackos want GM to die because they were the largest automaker in the world for years and perpetuated the manufacturing, marketing and sales of GAS GUZZLING SUVs. Plus they killed the notoriously unprofitable EV1 electric car.
· Politicians want GM to disappear taking dirty manufacturing plants and overpaid union jobs in the fly-over Midwest states with it, leaving only ultra high tech industry and clean-hands consumer service jobs for Americans to fight over (everyone’s a Starbuck barista or Walmat greeter, yay!).
· Media critics and Consumer Reports would love GM to die as punishment for the decade of the 1980s – shoddy quality and rebadged look-alike product- and for the 1990s – SUV consumer fad and plasticky interiors.
I too am a critic of GMs past product mistakes and somewhat misguided management decisions in decades past, but the murderous glee that glints in eyes and the spiteful tone of most people in the print and TV media, in Washington and much of the consumer public is ludicrous. GM’s products, production system, fuel economy and quality are world class these days (honestly, read any survey, any statistics, any published data). GM is onethe forefront of renewable ethanol fuel use and production, plug-in extended range hybrids, satellite navigation / communications and hydrogen fuel cells. Yet the old tired anecdotes remain, poor quality, gas guzzling, no technology. It is insane.
The thing that irks me the most however, is that so many would cheer what I consider a virtuous enterprise. One with strong core values, one that encourages their employees to be their best professionally, one that encourages their employees to do good at work, in their community and around the world. I know GM does all these things because I witnessed them first hand.
GM has strong core values, first and foremost to provide mobility and transportation to everyone it can around the world. I heard GM’s VP of R&D, Larry Burns, and CEO Rick Waggoner, speak about this many times. With so many in the world still not served with personal transportation, they spoke passionately about reaching out to developing nations where transportation is not yet affordable and congestion, energy use & environmental sustainability were emerging challenges. Yet these corporate leaders believed deeply in the democratization of the automobile that the made it a core tenet of the company. Product development and new technology investments were targeted at reaching everyone, not only emerging economies of the world, but other underserved markets like physically handicapped drivers. This belief in the enriching impact of personal mobility and the positive contribution the automobile has on society, makes GM’s continued pursuit and engagement of new customers a virtuous endeavor in my eyes.
GM also looks to bring out the best in its employees and pursues the best to join its ranks. I was lucky enough to work with some of the most knowledgeable and professional people I have ever met in my time there. My colleagues were top notch, delivered excellent work, designed and built excellent products (again check all the recent industry awards and quality stats on GM products as evidence) and encouraged each other to work hard and do a good job every day. Relationships with other organizations were at time strained, say with the UAW, dealers or suppliers, but by the 2000s everyone was really bringing their A-game in order succeed.
Lastly, I cannot think of a more charitable business organization than GM. The company went well beyond encouraging employees in the annual United Way campaign (which it did). Employees were actively encouraged to make regular deductions from their pay (with matching, of course) for a wide array of charities, even active support of environmental groups like the Nature Conservancy, http://www.nature.org/ (which I still support BTW, saved several acres of rainforest myself with GM’s help).
While I worked at GM in their R&D center, each employee was actively encouraged to promote and tutor students in math and science. The company actively sponsored dozens of high school and middle school F.I.R.S.T robotics teams (http://www.usfirst.org/), where students of all backgrounds, from math to art students, were encouraged to participate the fun, learning, invention and team competition. My colleagues and I tutored math students on lunch breaks and coached math teams at local middle schools in disadvantaged neighborhoods. GM even hosted the national MATHCOUNTS finals competition in 2005 (www.mathcounts.org), staging the ESPN broadcast, providing transportation and taking students / parents on tours of various company facilities around Detroit (and we endured the snide comments from parents from the coastal states all the while). Sure encouraging student excellence in math and science is a bit self serving for GM, more engineers in the professial pipeline, but think of how many young lives were improved. Even mine, I too was influenced by engineers from the GM Proving Ground visiting our physics class to teach us about applications of science in real life careers (the tax base that GM provided my local school district helped a lot, I am sure, as well).
Blood, food, clothing and Christmas toy drives are common place at GM and it is a shame that all this GOOD is under attack. The bloodlust of the liberal press, the conservative investment bankers, the twofaced politicians, the enviro-wackjobs and easily lead & mindless consumer sheep continues to drone on. They all seem to want GM to fail and I shudder to think of all the talent, all the human capital, all the virtue that will be destroyed.
How can they have forgotten that GM paychecks formed the backbone of the middle class? How can they forget that GM plants built the planes and tanks that won WWII? How can they forget that GM benefits pay for the pensions and healthcare of hundreds of thousands of elderly retirees (your own parents and grandparents)? How can they forget that GM donated millions in cash, matched by the charity of its employees, and gave dozens of work vehicles to the recovery efforts in New York City after the 9/11 terrorist attacks? How can they forget that GM’s “Keep America Rolling” marketing campaign kept the economy going in the aftermath of 9/11? How can they so gleefully revel in the slow decay of a company in America’s core manufacturing industry, with an impact on at least 1 in 14 jobs in this country (or more, some say 1 in 10, directly and/or indirectly)?
How can they revel in the death of a virtuous enterprise?
Peter De Lorenzo, the autoextremist, again has a biting and acidic critical assessment of Congress’ complete hypocrisy regarding assistance to the Detroit Automakers. They write a blank check for AIG and Citi Group no-questions-asked while forcing Ford and GM to outline their plans (I am sure Toyota, Honda and the rest of the imports are listening intently) before assisting with a bridge loan to weather the downturn. Nice, very nice (Pelosi and her cohort are clowns).
http://www.autoextremist.com/