Skip to comments.Seth Godin:The smart CEO's guide to social justice
Posted on 04/07/2014 8:45:40 AM PDT by LearnsFromMistakes
It seems as though profit-maximizing business people ought to be speaking up loudly and often for three changes in our culture, changes that while making life better also have a dramatically positive impact on their organizations.
Minimum Wage, Climate Change, and Anti-corruption movements.
Saturday, he missed it...
from his blog:
(Consider the brilliant strategic move Henry Ford made in doubling the pay of thousands of his workers in 1914. The assembly line was so efficient that it created profitsbut only when it was running, and high turnover made that difficult. By radically raising pay, Ford put pressure on all of his competitors (and on every industry that hired the sort of men he was hiring) at the same time that he created a gateway to the middle class, a middle class that could, of course, buy his cars, whether or not they happened to work for him).
No mention of the advantage Ford had of hiring/keeping quality people, and the fact that people wanted to work for him because he paid well. Comparing that to a mandated minimum - where no matter where you work or how hard you work, if you work you get the same amount - Seth misses the mark and completely doesn't understand the leverage Ford used in his example.
Just wondered who else read him and what they thought. Seth has some good stuff out there on education, but really missed it on Saturday.
I follow Seth too, but was disappointed by this post. He usually stays out of the political fray.
Ford had to pay more. He reduced men to cogs in his factories and the work was dangerous and miserable. Despite what any leftist says this pay raise had nothing to do with good intentions and it was not mandated by the government.