An American Manufacturer’s Meditation On 21st Century Business
Editor’s Note: The writer’s opinions are his own, and should not be construed as reflective of the views of the publisher or The Retailer.
As I write this, it’s Labor Day: September 1, 2014. What’s currently in the news? The British Prime Minister is calling for police power to seize passports of suspicious international travelers, ISIS is wreaking terror, Vladimir Putin is aggressively advancing troops further into the Ukraine, North Korea continues to antagonize the west by detaining more U.S. citizens, tension is mounting in the Gaza Strip and new cases of Ebola are being reported outside of Nigeria, while racial tensions flare in the American heartland. In the seemingly disjointed world of financial news, it’s business as usual. Apple just announced its iPhone 6 and Denny’s is trumpeting the creation of a $300 “Grand Slam Breakfast” for its more “discerning” New York City customers. Is this just another day in the life? Is it sheer madness?
I’m a middle-aged, moderately conservative owner of a small manufacturing company here in the United States. My father arrived on American shores in the late ’50s. He spoke broken English and, due to the political climate of his own country, he’s never returned to it. He, unfortunately, didn’t have $300 (or the inflation-adjusted equivalent) to spend on a hot breakfast, so he began traversing the country to find a home and to obtain the scholarships needed to attend a respected American university. He studied hard, and worked even harder, to graduate with a solid education and a respectable skill set that would allow him to provide for his children and ensure their own children’s needs would be met. The concepts of capitalism and democracy inspired his pilgrimage, and he brought them to bear through his diligence, his discipline and his desire for a better way of life…the classic American dream.
My parents were blessed and they knew it. They ensured their children appreciated the countless Americans who’ve sacrificed over the years to protect and preserve our way of life. Labor Day gives us a well-deserved moment to reflect on our families, our rights, our wealth, our values and our responsibilities: both as individuals and as American businesses. The word “labor” calls to mind the concepts that embody a typical day’s work…a day that, for most of us, is fair and acceptable. The sacrifices mentioned earlier have preserved political and social systems that provide for our rights as citizens and laborers; this has allowed capitalism to flourish organically.
Often, we might take for granted our ability to work, enjoy our jobs, and build our careers and businesses. We should remember we have these abilities because laws and regulations allow us to negotiate a wage that’s fair and proportional to our efforts. We labor in environments that are regulated to ensure proper working conditions and safety; we’re afforded reasonable and humane work schedules. Not everyone in our “global community” enjoys the same rights, privileges and protections.
According to Wikipedia, “fair trade” can be understood as “an organized social movement whose stated goal is to help producers in developing countries achieve better trading conditions and to promote sustainability. Members of the movement advocate the payment of higher prices to exporters, as well as higher social and environmental standards.” The entry continues, “The movement seeks to promote greater equity in international trading partnerships through dialogue, transparency and respect. It promotes sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers in developing countries.” The idea that our extended community is participating in “fair trade” suggests there are functioning mechanisms to ensure consistency.
Regrettably, our American ideas of fairness may not always be consistent with all members of the global community. “Fair trade,” then, loses much of its meaning. If we, nationally and internationally, are unable to reach broad consensus, then “fair trade” is just a nice-sounding compound word that rolls off the tongue with a gentle cadence. Although the intentions of “fair trade” are real, noble and honorable, fair trade as a reality is, for many, a distant and flickering light. International business testifies that capitalism is alive and well. But what form does capitalism assume if it’s devoid of the earlier-mentioned standards and rights? The Greek historian Polybius understood all too well the dynamics of anacyclosis: a theory of political evolution that testifies to how benign forms of government tend to degenerate into those that aren’t.
As an American, I’m confident that we can, and do, promote fairness within our national economy. However, as a father, consumer, business owner and fellow human, I do not believe that everyone in our global community is experiencing the same protections. Their rights are not supported by the same social, moral and legal codes as ours are. So, where’s the “fair” in that scenario?
It seems impossible not to be an active participant in this system, especially considering our highly technical—and highly tactical—business. But, without democratic values and protections for workers’ rights, capitalism assumes a mutated form. Striving to manufacture stateside—and to build and buy American—can promote the healthy distribution of wealth, not only in our country but also in the entire global market. “Just one” manufacturing job can result in ripples that affect 10 others. The United States is uniquely positioned to illustrate that capitalism functions properly with, and is a privilege of, democracy.
Hopefully, one day, these values will achieve a “real” global majority. And then, perhaps, international governing bodies will legislate with fairness, wisdom and compassion. Until such time, we, as a world leader, should continue to make every effort to reestablish our national manufacturing base, bringing business and jobs back home. Above all, we should choose our global partners with care, ensuring their capacity, and their intent, to promote consistent core values that support a true sense of democracy, humanity and trade that is equitable for all.
It seems clear that, in this global economy, what’s “fair” is simply relative. But, at the core of our existence, what’s “right” is simply right.
Dariush Rad is President and CEO of Asterope.
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