"(T)o say that the individual is culturally constituted has become a truism. . . . We assume, almost without question, that a self belongs to a specific cultural world much as it speaks a native language." James Clifford
Showing posts with label patriotism. Show all posts
Showing posts with label patriotism. Show all posts

Tuesday, September 4, 2018

Nike Takes a Controversial Stand on NFL-Player Protests: A Foray into Unnecessary Risk


“Nike became Nike because it was built on the idea of rebellion,” Jemele Hill, a sports journalist wrote. “This is the same company that dealt w/ the NBA banning Air Jordans. They made [Michael] Jordan the face of the company at a time when black men were considered to be a huge risk as pitch men.”[1] Just days before the 2018-2019 NFL football season got underway, Nike threw “its weight behind one of the most polarizing figures in football, and America: former San Francisco 49ers quarterback Colin Kaepernick.”[2] He had been a leader in the black players’ movement to protest, by kneeling during the national anthem, the recurring abuse of power by police. The element of financial risk in Nike’s decision to include Kaepernick in an advertising campaign brings up the question: should businesses take sides on political issues—particularly, on contentious ones?
The matter of race at the time of Nike’s announcement in 2018 can be likened to a hot potato. In fact, the issue pertaining to Black Americans was sizzling, especially in the Arizona heat. On the Labor Day weekend, I witnessed two racial fights in Phoenix. One, on bus on the West side, began as a young Black mother of two thought a Caucasian had used the n-word; in fact, the man had stated that it is racist to permit Black-only use of the word. The substance of his assertion was borne out as the woman stirred up three Black men in the back of the bus, who because verbally abusive and threatening to the Caucasian man. As a bystander, I felt very uncomfortable. Even so, the driver ignored the aggressiveness and kept driving—that is, until the Black woman accused him of being a racist for not having thrown the accused “N-word” man off the bus. The driver pulled over and called the police, who removed that man from the bus and yet allowed the verbally aggressive passengers to remain. Not even the Caucasian driver had them removed, in spite of the fact that the Black mother had shouted “You’re a racist!” at him! The result was that the threatening and verbally abusive passengers felt emboldened, and thus likely to pounce again.
The very next day, in fact, on the city’s light rail, a Black man called a Hispanic man the N-word. That man objected, insisting that he was not Black. “Don’t call me that!” he insisted. Even though he was correct, several Black passengers pounced, as if they were justified. To be verbally and physically aggressive is two degrees of separation from apologizing. No security was on that train, and the driver did not hear the noise. Fortunately, a key person got off just before the fight would likely have gone to blows. Yet even so, that the ganging up on the offended man could go on effectively emboldened the activity. Hence I could predict there would be more of it. This was something new in American society, I thought after the second incident. I had witnessed many Black people under 40 regularly ignoring a myriad of local laws; I wondered if that sense of entitlement was then grounding a herd-like aggression that paid little heed to being morally justified (i.e., unlike the civil rights movement). One effect, I surmised at the time, was that the race would become increasingly avoided in big cities. I do not mean to suggest that this phenomenon can or should be generalized to an entire race—that would be racist. Yet it is entirely reasonable to instinctively avoid potentially threatening situations. Hence I took the decision to avoid certain bus routes in Phoenix. With so much meanness among strangers in that city, I wanted to be able to avoid that city itself, for on top of the incivility is a police-state that does not comprehend the concept of excessiveness, or “over-kill”-such as in police wearing bullet-proof vests regularly patrolling down the aisles of several Fry’s grocery stores. Just a week before the race fights described above, I heard a report of police having beaten up an unarmed Black man in Mesa. I suppose this could be looked at as “what goes around comes around” stemming from the sordid lawless and aggressive/racist mentalities I witnessed on public transportation, or as the indirect (and thus inappropriate) cause of the herd-aggression on the bus and rail.
In the context of unresolved racial issues centered around the Black race in America, Nike was indeed taking a financial risk in taking sides, in effect, on the NFL players’ protest against police brutality. The company could count on the supporters of the protests and even the gray area wherein both the Black aggression/racism/lawlessness and the police abuse of power are eschewed. The question was how far the “defend the flag” supporters and Caucasian racists would go in opposing the company. Why not stay out of controversial political issues if that means not risking any ideological group? Why not stick to the knitting? Surely large businesses have enough to deal with in being large organizations, and a given product or product-line always stands in need of improvement. To divert from these tasks and go so far as to risk the loss of part of a customer base without the approval of stockholders strikes me as an impious, or presumptuous, managerial move.


1. Nathaniel Meyersohn, “Nike Takes Sides, Tapping Colin Kaepernick for New ‘Just Do It’ Ad,” CNN Money, September 4, 2018 (accessed same day).
2. Ibid.

Tuesday, July 29, 2014

Bad Boy Banks Enabling Inversion: Can a Firm Be Patriotic?

The “corporate citizenship” literature has it that companies in the private sector can indeed be “good citizens.” Even though a company cannot vote or be drafted, citizenship is said to fit as an apt description of what is organizationally speaking a profit-seeking machine. To say that a company is a good or bad citizen is, moreover, to anthropomorphise (i.e., apply human characteristics to a non-human). Furthermore, in their managerial capacities, the people who run companies are duty-bound to act in the financial interest of the stockholders, and only then in the broader societal interest. Even so, an ethical basis does exist on which some of the banks can be viewed as culpable.


Between 2011 and 2014 when Goldman Sachs made nearly $210 million in “inversion fees” for helping companies based in the U.S. shift their headquarters overseas to obviate a relatively high U.S. corporate tax, asking whether the executives at the bank were patriotic is tantamount to making a category mistake. A person can without contradiction be patriotic away from work while focusing on increasing inversion fees in his or her managerial role. Hence, Jamie Dimon could sincerely look at those fees earned by JPMorgan Chase and claim, “I’m just as patriotic as anyone.”[1] Were he to have put his personal patriotism into force at the bank at the expense of the stockholders’ financial interests and the chartered function of the bank, he would have been unethically disregarding his fiduciary duty. From a Kantian standpoint, we can ask what would happen if every manager at every bank had as his or her own “personal project” as a patriotic U.S. citizen trump the duty. Patriotism, after all, is hardly monolithic, but involves interpretation in discerning the applications and the proper choices therein. Banks could hardly function that way, so to say every manager should put patriotism first would not make sense (for the banks would fail under such a mandate). This, by the way, is the first formulation of Kant’s categorical imperative. If universalizing your maxim doesn’t work because of a contradiction in the reasoning or logic, the maxim is unethical.

The argument that banks that had been in trouble in 2008 and subsequently received loaned funds from the U.S. Government are obliged ethically not to turn around and profit by depriving that government of corporate tax revenue presents us with a stronger case, for it rests on an implicit contract, or quid pro quo, rather than patriotism. Social contract theory, of which Kant was an advocate, includes implicit contracts, rather than being limited to the ones where both parties sign on the dotted line. In fact, as regards any historical agreement establishing government and citizens, Kant idealizes the notion to say that such an agreement would be what people would agree to in a state of nature—not that such an agreement was literally made as man first stepped into complex living arrangements. From this interpretation of the theory, it makes sense to say that in return for being bailed out—even from the tailwind of irrational exuberance aided and abetted by a “big short”—a person naturally would expect an obligation not to double-cross the hand that had helped at the time of crisis.

This ethical argument applies to Goldman Sachs, Morgan Stanley, and Citigroup, each of which made sizeable profits from inversion fees and had needed the government bailout. JPMorgan Chase, on the other hand, avoided the greedy temptation to get into mortgage-based derivatives and insurance swaps based on the securities, and thus that bank did not face the implicit obligation. Jamie Dimon need not have jumped to defend his patriotism after all, or even an implicit obligation that his bank put the revenue of the U.S. Government before stockholder profits.

Regarding Goldman Sachs and Citigroup, dismissing the implicit obligation was, say we say, par for the course (i.e., in keeping with the banks’ respective cultures), for in both banks clients were lied to regarding what the traders knew were “crap.” I’m referring of course to the bonds based on sub-prime mortgages. Such fraud is also a disregard for an implicit social contract (as well as a very public legal one). Societally, people have a general expectation that people working at a bank will not exploit them through dishonest means. That’s not how business is done, the average Joe would rightly say. So perhaps the utility of this case of inversion fees lies in what it says about the intractability of a mentality in a corporate culture: the dysfunction is very difficult to remove, and thus it is likely to perpetuate itself in a pattern.





1. Mark Gongloff, “’Patriotic’ Big Banks Profit Helping U.S. Companies Dodge Taxes,” The Huffington Post, July 29, 2014.