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Re: HOMESTEAD: Myth of Employee Ownership



ESOP law is not to blame.  The law itself is flexible.  It allows for traditional top-down management philosophies to prevail.  It also allows for structured democracy to operate.  That's why we invented the Justice-Based Management model.  (See http://www.cesj.org/jbm/whatisjbm.htm)

The real problem lies in academia and its blindness to the empowering moral philosophy of Father William Ferree (on Social Justice and Social Charity) and that of Kelso and Adler (on Economic Justice).  As long as future leaders continue to be educated in the moral philosophies of capitalism and socialism, their thought patterns will continue to reflect autocratic, elitist principles and feudalistic behavior to their fellow workers, not the structured democracy of Justice-Based Management.  I don't blame these leaders.  I blame the moral systems within which these leaders (corporate executive, labor leaders, politicians, media, teachers, etc.) operate.  Those who are serious focus on changing social systems and the paradigms which guide the architects of these systems.

Norm Kurland

Michael Bindner wrote:
The ESOP Law retains a bias toward hierarchism, so I agree.  For Employee-Ownership to be successful hierarchy must be smashed within such firms and replaced with democracy.
 
Mike

John Médaille <john@medaille.com> wrote:
At 11:30 AM 1/19/2004 -0800, Michael Bindner wrote:
>This is about what I would expect from Bruce, who I worked with in my
>younger days on the staff of GOP Senator Roger Jepsen.
>
>What Bruce and the ESOP critics (as well as most ESOP practicitions) is
>that these firms fail because they don't change their economic
>assumptions. Most continue to behave like hierarchical capitalist firms -
>or else go to far the other way by placating Unions. If firms change
>their assumptions and practice system like Value Based Management or my
>own 21st Century Economics (aka Inter-Independence) their results will
>differ greatly and they will beat out the capitalist firms which Mr.
>Bartlet has spent his career defending.

But to say that is to concede Bruce's point, is it not? Namely, that
"employee owner! ship" is not, per se, a panacea. In fact, it has to be
connected to a shift in values and without this, it is just another
financing scheme that really doesn't change anything.

The original ESOP law was flawed, to say the least. It wasn't really an
implementation of the Kelso-Adler thesis. It was a great first step, but a
terrible end-point. Alas, for 30 years, its been treated as an end-point
rather than a baby step. Hence it is too easy to use the ESOP itself to
discredit employee ownership. And the CESJ's penchant for congratulating
themselves on their one victory and suppressing any real discussion has
worked to ensure that it will continue to be a small movement celebrating
an ancient and partial victory.


John C. Médaille

"A dead thing can go with the stream...
but only a living thing can go against it."
-G. K. Chesterton
http://www.medaille.com/distributivism.htm
john@medaille.com

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