Issues at Uber Debunks Study that Social Responsibility is Bad for Business

It’s time for Uber to move out of the line of fire or risk losing the company. There’s a reason that I used that phrase in the title of my book, From Bully to Bull’s-Eye: Move Your Organization Out of the Line of Fire. Too often when companies install a culture of bullying and personal harassment they need to get rid of the bullies at the top in order to survive. 

Uber has given me no end of issues to write about recently and today isn’t any exception; the New York Times reports that 20 employees have been fired following a sexual harassment investigation. The outside law firm Perkins Coie was hired to look into 215 allegations of harassment, discrimination and bullying and found reason to take action in 58 cases. According to the Times, former U.S. Attorney General Eric Holder is also looking into workplace culture as part of a larger investigation.

When you add these firings to the massive exodus of top executives, including the company president, the heads of finance and product, the East Coast general manager and high-level engineers, Uber begins to look like a car wreck. This news follows shocking revelations about sexual harassment revealed by a former female engineer and the suicide of an African-American engineer.

Uber’s troubles directly contradicts studies such as the one conducted by Florida Atlantic University College of Business that report corporate social responsibility as bad for shareholders. Consistent malfeasance and bullying in the workplace doesn’t seem to be doing much to bolster Uber. Isn’t it time to set aside the teachings of Milton Friedman and Harvard Business School that only shareholders count and start building psychologically healthy, safe, fair and productive workplaces?

Illustration credit: MMM

A Prescription for Refilling Our Middle-Skills Workforce

To read the headlines, you would think that there are only two types of jobs in America—blue collar working class and college-educated elite. While the irony of Donald Trump’s obsession with the former has escaped few people, the truth is that everyone is ignoring the most important jobs of all—those that fall under the title middle skills. Middle-skill jobs are those that require more education than a high school diploma but don’t necessarily require a four-year degree. They are the backbone of America’s economy and include professions like machinists, practical nurses, technical sales people, computer technicians, carpenters and so on. They are going unfilled, even as millions of Americans are searching for work, which could create long-term problems for America.

To find a solution, politicians, educators, governments and business leaders would be well advised to revisit this 2014 report from the Harvard Business School. Its findings and recommendations are every bit as timely now as they were when the report was first published. If we don’t shift our attitude about the importance of middle skill jobs and respect them for the essential contribution they provide, skill shortages will continue to grow to our detriment. 

Andrew Faas is the author of

Photo credit: BIGSTOCK

The Majority of Organizational Leaders Don’t Care About Ethics

In his book, The Golden Passport: Harvard Business School, the Limits of Capitalism, and the Moral Failure of the MBA Elite (HarperBusiness; April 2017), Duff McDonald outlines how professors at the Harvard Business School sold their soul to Wall Street by abandoning a 75-year-old philosophy articulated in 1951 by John D. Rockefeller: “The job of management is to maintain an equitable and working balance among the claims of the various directly affected interest groups...stockholders, employees, customers, and the public at large.”

Harvard fell under the influence of former University of Rochester Professor Michael Jensen in the 1980s. Jensen wrote a paper that laid the groundwork a seismic shift in philosophy to the economic theory that shareholders must always be first, insisting that institutional investors and Wall Streeters be released from “the obligation of considering anything but their own narrow wants and needs” according to Newsweek article by McDonald. By 1985 Harvard invited Jensen to join their faculty.

In 2003, Harvard created its Leadership and Corporate Accountability course. McDonald doesn't buy it, I don't buy it, nor should you buy it. McDonald references a New York Times interview where Jensen responded to a question on ethics with, “But I admit, we scholars don't yet know the real answer on how to make this happen."

McDonald succinctly retorts, "That's called ethics, and Jensen is right: Harvard Business School doesn't know how to teach ethics as well as it knows how to teach financial engineering, and it never will."

The propagation of Harvard’s teachings has long tendrils. In my book From Bully to Bull’s-Eye: Move Your Organization Out of the Line of Fire. I point out, "Rarely a day goes by when there is not a story in the media about abuse of power, inappropriate behavior, corruption and greed on the part of leadership in every segment of our society, worldwide. Whether it is business, industry, government, education, sport, media, social services, military, police, entertainment, not-for-profit or religion, not one is immune.”

The effects of the Harvard Business School philosophy reach to the highest office in the land. In a recent Financial Times article, “Complacency will eat the heart out of Whole Foods,” writer Andrew Hill cites Donald Trump’s recent encounter with the Associated Press. "Is there anything from your business background that isn't applicable to the job of president?” the correspondent asks.

“Well, in business, you don't necessarily need heart, whereas here, almost everything affects people,” Trump says, then adds: “In fact, in business you’re actually better off without it."

And the hits keep coming. Last week, in a note to shareholders of American Airlines about the decision to give pay increases to pilots and flight attendants who were paid less than the industry standard, Citi analyst Kevin Crissey wrote, “This is frustrating. Labor is being paid first again. Shareholders get leftovers.”  This Wall Street idiot just reinforced the results of Harvard selling its soul with his disregard for all stakeholders other than the shareholder.

As I discussed yesterday, in a study conducted by Mental Health America sponsored by the Faas Foundation, an astounding 69 percent of more than 17,000 people surveyed admitted to speaking poorly about their organizations to others. Given what this legion of Harvard Business School graduates have done to capitalism, is any surprise?