Best Companies to Work For

The yearly list by CNN/Money of the best companies to work for is always worth a look - though it can simply generate envy for how good other people have it. If nothing else, it seems like a great site for business execs and owners to take a look at and evaluate how to make a better company - one that employees want to work for.

Borders Closing and the New Economy

The somewhat surprising - and disheartening to book lovers - failure of Borders Books to reorganize and emerge from bankruptcy represents a bellwether of the new economy as a result of the creative destruction that comes from improvements in technology. The failure of this business wasn't about corporate taxes or the national debt or a decline in literacy habits or poor management decisions. It was bound to happen the minute Amazon arrived on the scene - and Congress exempted online retailers from any state taxes where they didn't have a physical presence. Ultimately, brick and mortar retailers face an incredible challenge to compete against companies with much lower cost overhead - or underfoot as the case may be.

The closing of the Borders simply represents a new direction in a new economy that has yet to really define itself. Who knows what the landscape is going to look like as companies like Amazon continue to take more of the retail effort? Who knows where the people who worked at Borders are going to work? Who knows how an entire corporate structure simply vanishes and leaves in its wake a group of people and a pile of assets that must be reapportioned around the economy?

Even now as Congress begins serious discussion of a national solution to the online retail tax issue, the economy is unfolding and redefining itself. It is going to be uncomfortable and confusing and messy, but it is the new face of the retail world.

Corporate Responsibility

If the American economy produces more CEOs and business leaders like Whole Foods' John Mackey and Starbucks' Howard Schultz, then there is reason to be hopeful about the future of the American economy. If not, we are in serious trouble.

In his recent book Onward, as well as a series of speeches and public appearances, about his decision to return to the helm as CEO in 2008, Howard Schultz preaches the importance of corporate responsibility to the people they serve. Rather than being only focused on stock prices and growth, Schultz knows business leaders need to be "stewards of their community." For, if the people in the community do not earn a living wage with reasonable benefits and generate disposable income, they will not be able to afford to purchase products from, and even invest in, American companies.

Certainly, companies can search the world for capital, forever chasing new sources of wealth. However, the country would benefit from businesses investing in people, rather than seeking short-term gains. American corporate leaders could learn from German businesses who made controlling unemployment a priority in the recent recession. In response, Germany weathered the downturn and returned to productivity and growth far more quickly and effectively than the rest of world, especially America.

Let's hope American leaders learn.

Food Safety

Pass the F.D.A Food Safety and Modernization Act. Call your senators' offices and urge support of this comprehensive bill. It is really a no-brainer, as recent food-borne illness breakouts and revealing coverage of corrupt, or just dirty and ill-managed, food production facilities have made regulation of the food processors a common cause across party lines.

Alas, some - like the Glenn Beck's of the world - are resisting this common sense action out of naive ideological bias and irrational conspiracy's of government regulation. It is astounding that in nearly a century of existence, the FDA does not have the authority to test food for pathogens or require a recall. Seriously - the FDA cannot demand/force a recall of food products it knows to be dangerous, even lethal, to consumers. All food recalls are voluntary on the part of the industry. This is corrupt and dangerously foolish.

Two of our strongest and most eloquent critics of the food industry - Michael Pollan and Eric Schlosser - have a well argued and succinct commentary on the issue in the New York Times today. It is well worth the time.

Pass the "Food Safety Bill."

The German Job Machine

As Ireland spirals into financial disaster, Dubai struggles with a $100 billion in debt, and the United States economy sluggishly drags itself back to life with the albatross of a 9.5% unemployment rate weighing on it, the German state has sprung to life with factories churning out products and the chancellor talking about the potential for full employment.

How has this German miracle happened, amidst a world economy in disarray? The reality is an effective blend of public and private investment, committed to building the whole economy. Many of the more astute pundits - such as David Brooks - have been pointing to the German model for years on everything from industrial policy to health care reform. And with good reason. The German government and people have made rational, at times tough, decisions concerning public investment and social welfare programs while trying to jump start the economy. And it appears to be working.

Of course, the most significant benefit of the Germans has been their ability to handle health care. Some American critics might like to credit the German turnaround with the Merkle government making painful cuts to "welfare." Yet the factor remains that German companies and German workers are not burdened with health care and insurance costs as a result of the most effective blend of national health care.

Good for the Germans. Any chance we'll ever learn?

The Wrong Approach to E.Coli

As the battle continues to improve food safety and decrease the number of food borne illnesses, it appears corporate America is going the more complicated route once again, as it only seeks the bottom line. According to this story, the Cargill Corporation is having some success with a vaccine against E. Coli for the cattle in its herds. After testing 85,000 cattle, researchers report the cattle have not reacted negatively to the vaccine. However, this could simply create more problems.

It's always been my understanding the E.Coli - the dangerous strand of of 0151 - is non-existent in grass-fed cattle. Thus, if cows graze and eat only that which comes naturally to them, they never fall victim to E. Coli and don't pass it on to consumers. It seems, in some ways, as if companies like Cargill, who raise cows unnaturally on massive feedlots, are actually responsible for causing the illness they are now trying to develop a vaccine against. Yet, if they simply changed their business model, they wouldn't need this vaccine in the first place.

Not dealing with geniuses here - just unthinking profit seekers.

Take My GM Stock, Please

While I hate to take the loss, I'm coming to the conclusion that GM might need to to fail. The right thing might be for me, and all of us, to watch the company go down, as it has seemed determined to do for many years now. The financial planning side of me, of course, would love to see the government continue to support, and even bailout, this company. That's the part that has been buying the stock and waiting patiently for the Chevy Volt to hit the stores and revitalize the industry in a way the Prius only dreams of doing. Alas, that's the fool in me. There are too many other variables, from pension and health care costs, to poor administration and design systems, as well as an inclination in buyers that this just isn't a good product. I've never owned anything but an American car (and that doesn't include Toyotas made in Texas or Missouri), and I've always lamented the choices by so many Americans to do the opposite. Yet, I understand.

When I learn that the average UAW worker is earning $70 an hour, compared with$40 for auto workers at other manufacturers, I truly begin to doubt it's possible to fix this problem. If the government decided to bail this company out, a complete redesign of their labor contract would have to be part of the deal. That's a shame, considering the expectations of people who might have bought a house or enrolled their kid in college expecting a higher wage. But that's the reality. It's truly too bad, considering the news of health costs for the company, that GM didn't lead the charge fifteen years ago to back the Clinton health care plan which would have alleviated much of their problems. Now, many companies are getting on board, and it might be too late for these dinosaurs of American industry. Even the UAW tried to get the company to back a national pension and health care system fifty years ago, and when the company balked (out of absurd fears of "socialism"), the workers had no choice but to push for the best deals they could get. I don't blame them for inadvertently shooting themselves in the foot.

Then again, even if the company had been smart enough to foresee its health care and pension problems, the management would have still driven the company to its knees by making Tahoes and F150s when the world wanted Camrys and Priuses. So, I'll swallow the medicine and take the loss. It's the right thing to do. How sad.