Acting Responsible
The times we live in are tough. Every generation goes through it at least once in their lifetime. Companies are laying off people by the thousands. A total of 2,600,000 jobs were lost last year. You have companies like FedEx where employees have all agreed to a 5% paycut in order to protect each others jobs. My company, Microsoft, is reducing its workforce by 5,000 people in response to the economic conditions ahead. Companies are all responding in their own unique way, to best position themselves to stay-afloat and competitive.
Staying fiscally responsible will keep a company honest. Large and small companies are attempting to reduce transportation costs, energy usage, and unnecessary services to reduce their expenditures. 2009 is the year to be thrift.
I preface with all this, because I find it extremely reckless that Wall Street is dishing out $18.4 billion in bonuses this year. You are one of the largest culprits of this economic crisis. Remember CDOs? Remember asking for bailout money? As a tax payer, I find your actions offensive.
Why is it so difficult for companies to do the right thing? Think about your image. Here are two examples in both directions:
Bad: Big Three Auto. I understand executives have busy schedules and need to fly on private jets to maintain all appointments and maximize your time. But, what were you thinking? When going to Washington to ask for bailout money because your companies were failing, why did you fly private? Do you realize, if one of your companies showed restraint and flew commercial or even drove to Washington D.C., you would be in the spotlight.
Bad: Citigroup. What kind of impression does buying a $50,000,000 private plane set? One slip can tarnish your image in the media, and when you are looking for support from tax payers, that is something you cannot afford.
Good: New York Times. Executive Editor Bill Keller serves as a good example where his entire team, if they have to fly, fly coach.
Good: Hyundai. The Korean Car company has been running ads all month encouraging Americans to buy its cars. They concede that times are tough, so they are allowing people who lose their jobs to return their cars. What does that say about their company?
It is not difficult to do the right thing. All you have to do is evaluate every action you take, show restraint and discipline when spending, compassion for your employees, and be aware of the message you are sending.