The next problem has a similar structure as the last one. A large corporation is going to close the factory which provides the living of a small and up until now thriving community in what is really a company town a long way from the nearest big city and industrial park. Two thousand jobs are going, after a couple of years of re-organisations, cost-savings and productivity agreements, and some quite remarkable co-perations from the workforce and Unions, who understood how important it is to keep the jobs in the town. They know what happens to company towns which lose the company: permanent high unemployment passed down the generations and problems with drugs, depression, health and petty crime. The CEO knows this as well, and in a moment of night doubt, the CEO asks if she can, in all conscience, do this thing. She's not asking if she has a legal defence, because, assuming that her HR department are following the rules about consultation, there is no crime anywhere in sight. She's wondering if she can live with herself for causing the misery and degradation that is going to follow.
The following morning, she's just fine with it. First, neither she not the corporation are responsible for the lack of other economic opportunities in or near the town; second, it's not her fault if the locals take to heroin and skunk, that's their decision; third, the local council should be working to attract new employers into the area, and the local MP should be trying to get some Government subsidies to help that process; fourth, there is no rule that says the people have to stay in the town, let them move to where the work is; fifth, it's not her job to look after communities, it's her job to look after the company, and that's what she's doing. They can't go on with that loss-making factory, and they tried hard enough to make it profitable. Maybe, she thinks, they could do more than provide the usual outplacement advice, but what? Well, that's what she has an HR specialist for. Sixth, the only reason they are having to close the factory is the lower costs that competitors are getting by manufacturing in China. If you want a villain, blame the Chinese.
These look very similar to the reasons I gave in the first example. Except I don't like corporations who create employment ghost towns and I want them on the hook.
First, I can argue that the corporation is responsible for the lack of other employment opportunities: the world is covered by company towns and one-industry counties. Multi-employer areas are the exception, not the rule: London has two industries - The City and Whitehall - that all the rest rely on; Washington is a company town; New York falls apart without Wall Street and media. Actually, it's quite hard to think of robustly multi-industry towns. The CEO's company created the town, and now it is destroying it. Third, neither the local council nor the local MP have the skills to find another employer: this is like the NHS closing the hospitals and shutting down the GP's surgeries and saying that the local council should find its own health service. Fourth, everyone can't pack up and go, because how are they going to pay rent when they get to wherever it is they're going? This is England, not Kenya, they can't just build some more shacks in Kibera. I'm agreeing with her on points two and five. Point six is a real cheek: if she and her fellow CEO's hadn't started outsourcing to China in the first place, they wouldn't have let the Chinese create the industrial base in the first place. That's a devil of their own creation.
Now I've got her back on the hook, how does she get off? I'm not going to expect her to keep the factory open. I am going to ask she uses her corporation's vast networks to see if they can find another employer for the town, maybe as a joint venture with investment from both the exiting and the entering companies. I'm going to ask that her company sets up a scholarship program so that the children can see there is a point to doing well at school: they will be able to get out via university. I'm going to ask that the company make zero-interest loans available to help people re-locate if they do find jobs elsewhere, and set up a fund for paying interview expenses to be administered by its own finance department. Any more ideas along those lines, add them to the list. (In a similar vein, the pilot of our first example could ask that the army make some attempt to provide medical services to the children in the school if there are injuries. Of course, that would be a lot harder to do in practice than what we're asking the corporation to do, which is spend a bit of money.)
Notice how I'm not discussing right and wrong. That would get me nowhere. Nor am I appealing to general principles, which for different reasons, would also get me nowhere. I'm keeping the discussion about practicalities, and appealing implicitly, to a sense of fairness or common interest or general decency and thoughtfulness. This isn't what moralists do, but it is what politicians, businessmen and, I rather suspect, priests and other elders do.
In the third part, we will see why the moralists are on the wrong track entirely.
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