{"id":1627,"date":"2008-09-16T19:36:37","date_gmt":"2008-09-16T18:36:37","guid":{"rendered":"http:\/\/www.corporate-eye.com\/?p=1627"},"modified":"2008-09-17T01:05:41","modified_gmt":"2008-09-17T00:05:41","slug":"lehman-brothers-why-real-business-leaders-do-csr","status":"publish","type":"post","link":"https:\/\/www.corporate-eye.com\/main\/lehman-brothers-why-real-business-leaders-do-csr\/","title":{"rendered":"Lehman Brothers: Why Real Business Leaders Do CSR"},"content":{"rendered":"<p><a href=\"https:\/\/www.corporate-eye.com\/main\/wp-content\/uploads\/2008\/09\/sunset-road.jpg\"><img decoding=\"async\" class=\"alignleft size-thumbnail wp-image-1632 lazyload\" data-src=\"https:\/\/www.corporate-eye.com\/main\/wp-content\/uploads\/2008\/09\/sunset-road-132x200.jpg\" alt=\"\" width=\"132\" height=\"200\" data-srcset=\"https:\/\/www.corporate-eye.com\/main\/wp-content\/uploads\/2008\/09\/sunset-road-132x200.jpg 132w, https:\/\/www.corporate-eye.com\/main\/wp-content\/uploads\/2008\/09\/sunset-road-198x300.jpg 198w, https:\/\/www.corporate-eye.com\/main\/wp-content\/uploads\/2008\/09\/sunset-road.jpg 679w\" data-sizes=\"(max-width: 132px) 100vw, 132px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 132px; --smush-placeholder-aspect-ratio: 132\/200;\" \/><\/a>The blogs are buzzing and the papers burning: not since Diana has some many column inches been created by so many journalists and commentators.  In fact (whisper it quietly) it may even surpass <a href=\"http:\/\/www.meldrum.co.uk\/mhp\/continuity\/diana.html\">Diana\u2019s death<\/a>.<\/p>\n<p>Of course, I\u2019m talking about <a href=\"http:\/\/www.lehman.com\/\">Lehman Brothers<\/a> <a href=\"http:\/\/inspiredeconomist.com\/2008\/09\/15\/lehman-brothers-collapse-new-economic-architecture-required\/\">collapsing into bankruptcy<\/a>, <a href=\"http:\/\/www.ml.com\/\">Merrill Lynch<\/a> (where I once gave seminars on Desktop Publishing!) <a href=\"http:\/\/news.bbc.co.uk\/1\/hi\/business\/7616068.stm\">being sold<\/a> to <a href=\"https:\/\/www.bankofamerica.com\">Bank of America<\/a> and &#8230; who knows what about to happen to <a href=\"http:\/\/www.aig.com\/\">AIG<\/a>.<\/p>\n<p>Bad days, everyone one agrees.  There\u2019s no more ostrich-head sticking in the sand, no more \u201cNah .. it\u2019s just a bad squall, it\u2019ll pass.\u201d  No, this time it&#8217;s serious.<\/p>\n<p>\u201cA seismic event\u201d which is \u201ctesting where the failure point lies\u201d, according to <a href=\"http:\/\/news.bbc.co.uk\/today\/hi\/today\/newsid_7616000\/7616109.stm\">commentators on Radio Four\u2019s flagship \u201cToday\u201d programme<\/a>.  Note that word: FAILURE.  Not often spoken even by financial pessimists.<!--more--><\/p>\n<p><strong>The Crash is Upon Us<\/strong><br \/>\nSo now we can openly talk about the meltdown which is upon us.  <a href=\"http:\/\/www.northernrock.co.uk\/\">Northern Rock<\/a> and <a href=\"http:\/\/www.bearstearns.com\">Bear Stearns<\/a> were something of a preamble, an appetiser for the main course of chewy, low quality beef now being served.<\/p>\n<p>Will yesterday go down as \u201cBlack Monday\u201d in homage to October 24th 1929, when the <a href=\"http:\/\/en.wikipedia.org\/wiki\/Wall_Street_Crash_of_1929\">Great Wall Street Crash <\/a>started?  That\u2019s up to the vanities of newspaper editors, who are a strange bunch of fish when it comes to these things.<\/p>\n<p>What is for sure is that we are now in a crash which is just as great, just as spectacular and just as damaging.  Nobody\u2019s flung themselves out of a window (yet), but that\u2019s simply because no one feels that they\u2019ve let anyone down that badly.<\/p>\n<div class=\"pqRight\"><a href=\"https:\/\/www.corporate-eye.com\/main\/wp-content\/uploads\/2008\/09\/yahoo-finance-djsi-2003-2008.gif\"><img decoding=\"async\" data-src=\"https:\/\/www.corporate-eye.com\/main\/wp-content\/uploads\/2008\/09\/yahoo-finance-djsi-2003-2008-150x94.gif\" alt=\"\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\" style=\"--smush-placeholder-width: 150px; --smush-placeholder-aspect-ratio: 150\/94;\" \/><\/a><a href=\"http:\/\/finance.yahoo.com\/echarts?s=%5EDJI#chart1:symbol=^dji;range=20030407,20080915;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined\">Yahoo Finance<br \/>\nDow Jones Index 2003-2008<br \/>\nHow We Arrived Here<\/a><\/div>\n<p><strong>What Will You Do?<\/strong><br \/>\nHang on a second &#8230; am I advocating that any banker or dealer who wishes to show their remorse should fling themselves off the top of <a href=\"http:\/\/www.canarywharf.com\/\">Canary Wharf<\/a>?  No.  I\u2019m simply wondering why, in 1929, brokers felt that much responsibility and shame but they don\u2019t appear to now?<\/p>\n<p>The pay gap between people in the City and employees elsewhere in London is regularly described as being <a href=\"http:\/\/www.thisislondon.co.uk\/news\/article-23372229-details\/'Ridiculous'%20pay%20gap%20between%20City%20workers%20and%20rest%20of%20country\/article.do\">\u201cridiculous\u201d<\/a>.  These huge amounts of money are usually justified by pointing to excessive hours or work and the stress of taking risks.<\/p>\n<p>It is this enormous pay gap which draws people to work in the city, nothing else.  They take the stress and long hours as part of the culture, what you need to suffer in order to earn that kind of money.<\/p>\n<p>But do they take the responsibility?  Are they there simply to earn stonking amounts of money so that they can, as <a href=\"http:\/\/www.let.rug.nl\/~usa\/B\/asmith\/adams1.htm\">Adam Smith<\/a> put it, <a href=\"http:\/\/www.fee.org\/PUBLICATIONS\/THE-FREEMAN\/article.asp?aid=543\">\u201cwalk about loaded with a multitude of baubles\u201d<\/a>?<\/p>\n<p>Or are they there to invest other people\u2019s money wisely?<\/p>\n<div class=\"pqRight\"><a href=\"https:\/\/www.corporate-eye.com\/main\/wp-content\/uploads\/2008\/09\/yahoo-finance-dji-1928-1935.gif\"><img decoding=\"async\" data-src=\"https:\/\/www.corporate-eye.com\/main\/wp-content\/uploads\/2008\/09\/yahoo-finance-dji-1928-1935-150x91.gif\" alt=\"\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\" style=\"--smush-placeholder-width: 150px; --smush-placeholder-aspect-ratio: 150\/91;\" \/><\/a><a href=\"http:\/\/finance.yahoo.com\/echarts?s=%5EDJI#chart3:symbol=^dji;range=19281001,19350102;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on\">Yahoo Finance<br \/>\nDow Jones Index 1928-1935<br \/>\nWhat Could Happen Next<\/a><\/div>\n<p><strong>Why Did You Do It?<\/strong><br \/>\nI do not wish to offend, I simply observe.  Every single worker who is leaving Lehman Brothers today, or any other institution in days to come, will be extremely worried about their own personal circumstances and rightly so.<\/p>\n<p>It cannot be easy to be earning well over \u00a3100,000pa and then find your income for this month is zero.  I know: I did it a few times at \u00a350,000pa and it was very painful for both me and my family.<\/p>\n<p>However, I heard yesterday of one lady whose entire pension is tied up in Lehman Brothers.  Employees can go out and get another job: pensioners\u2019 options are rather more limited.<\/p>\n<p>How many of the departing Lehman Brothers employees are thinking of this lady, or the countless others who have lost their income for the rest of their lives?<\/p>\n<p><strong>Who Takes Responsibility?<\/strong><br \/>\nAs any good soldier knows, you always follow orders when they\u2019re given.  You can question, debate and discuss in the fullness of time, but in the heat of battle you just get on with what you\u2019re commanded to do.<\/p>\n<p>Business and finance work along the same lines.  Your boss tells you to do something and you do it.  So some, probably most, of this lack of responsibility cannot lie just with the employees.<\/p>\n<p>For example, what responsibility did the CEOs of <a href=\"http:\/\/www.fanniemae.com\">Fannie Mae<\/a> and <a href=\"http:\/\/www.freddiemac.com\">Freddie Mac<\/a> take?  That\u2019s not known, but after their companies were nationalised <a href=\"http:\/\/www.marketwatch.com\/news\/story\/fannie-freddie-ceo-severance-payouts\/story.aspx?guid=%7B832C8CA2-92B9-4AE4-9D8F-6105C62DBA1B%7D&amp;dist=hplatest\">they walked away with $9m and $14m respectively<\/a>.<\/p>\n<p>You cannot blame these CEOs for the turbulence on the stock markets which brought their companies low, any more than you can blame a ship\u2019s captain for the storm which sank his vessel.<\/p>\n<p>You could, however, question the captain\u2019s judgement for putting out to sea in such bad weather (risk) or not ensuring his ship was properly maintained (liquidity).<\/p>\n<div class=\"pqRight\"><a href=\"https:\/\/www.corporate-eye.com\/main\/wp-content\/uploads\/2008\/09\/kay-ryan.gif\"><img decoding=\"async\" data-src=\"https:\/\/www.corporate-eye.com\/main\/wp-content\/uploads\/2008\/09\/kay-ryan-150x114.gif\" alt=\"\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\" style=\"--smush-placeholder-width: 150px; --smush-placeholder-aspect-ratio: 150\/114;\" \/><\/a><a href=\"http:\/\/www.loc.gov\/poetry\/laureate_current.html\">Kay Ryan, US Poet Laureate<\/a><\/div>\n<p><strong>Why?<\/strong><br \/>\nSo when corporate leaders start to talk about Corporate Social Responsibility they need to weigh those words very carefully and examine exactly what they mean.<\/p>\n<p>Do they mean giving to charity, improving the working conditions of employees and communities in the developing world, engaging with NGOs and allowing their employees time out to work for good causes?<\/p>\n<p>Do they mean taking responsibility for their company\u2019s actions, promising to return salaries and bonuses should their actions end up damaging, not supporting, society as whole?<\/p>\n<p>Or do they mean ticking boxes to keep the regulators and shareholders happy, an annoyance which has to be suffered in order to ensure the money continues to flow?<\/p>\n<p>With a neat editorial flick of the wrist, this morning <a href=\"http:\/\/news.bbc.co.uk\/today\/hi\/default.stm\">the Today Programme<\/a> featured a story about various <a href=\"http:\/\/www.poets.org\/viewmedia.php\/prmMID\/20269\">recordings of American poets <\/a>which have been released.  <a href=\"http:\/\/www.poets.org\/viewmedia.php\/prmMID\/20269\">\u201cHome To Roost\u201d<\/a>, by <a href=\"http:\/\/www.loc.gov\/poetry\/laureate_current.html\">the new US poet laureate Kay Ryan<\/a>, was one:<\/p>\n<table border=\"0\" cellpadding=\"10\" width=\"100%\">\n<tbody>\n<tr>\n<td width=\"25%\" valign=\"top\"><\/td>\n<td width=\"25%\" valign=\"top\">The chickens<br \/>\nare circling and<br \/>\nblotting out the<br \/>\nday. The sun is<br \/>\nbright, but the<br \/>\nchickens are in<br \/>\nthe way. Yes,<br \/>\nthe sky is dark<br \/>\nwith chickens,<br \/>\ndense with them.<\/td>\n<td width=\"25%\" valign=\"top\">They turn and<br \/>\nthen they turn<br \/>\nagain. These<br \/>\nare the chickens<br \/>\nyou let loose<br \/>\none at a time<br \/>\nand small\u2014<br \/>\nvarious breeds.<\/td>\n<td width=\"25%\" valign=\"top\">Now they have<br \/>\ncome home<br \/>\nto roost\u2014all<br \/>\nthe same kind<br \/>\nat the same speed.<\/td>\n<td width=\"25%\" valign=\"top\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h6>Picture Credit: &#8220;Sunset Road&#8221; by Tambako the Jaguar on Flickr under Creative Commons Attribution No Derivative Licence.<\/h6>\n","protected":false},"excerpt":{"rendered":"<p>The blogs are buzzing and the papers burning: not since Diana has some many column inches been created by so many journalists and commentators. In fact (whisper it quietly) it may even surpass Diana\u2019s death. Of course, I\u2019m talking about Lehman Brothers collapsing into bankruptcy, Merrill Lynch (where I once gave seminars on Desktop Publishing!) [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[23,24],"tags":[676,661,658,668,662,675,54,673,657,674,656,669,659,654,667,655,672,671],"class_list":{"0":"post-1627","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-csr","7":"category-media","8":"tag-676","9":"tag-adam-smith","10":"tag-aig","11":"tag-bank-of-america","12":"tag-baubles","13":"tag-canary-wharf","14":"tag-corporate-social-responsibility","15":"tag-fannie-mae","16":"tag-fanny-mae","17":"tag-freddie-mac","18":"tag-freddie-mack","19":"tag-kay-lynch","20":"tag-kay-ryan","21":"tag-lehman-brothers","22":"tag-market-crash","23":"tag-merrill-lynch","24":"tag-today-programme","25":"tag-yahoo-finance","26":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Lehman Brothers: Why Real Business Leaders Do CSR - Corporate Eye<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.corporate-eye.com\/main\/lehman-brothers-why-real-business-leaders-do-csr\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lehman Brothers: Why Real Business Leaders Do CSR - Corporate Eye\" \/>\n<meta property=\"og:description\" content=\"The blogs are buzzing and the papers burning: not since Diana has some many column inches been created by so many journalists and commentators. In fact (whisper it quietly) it may even surpass Diana\u2019s death. Of course, I\u2019m talking about Lehman Brothers collapsing into bankruptcy, Merrill Lynch (where I once gave seminars on Desktop Publishing!) 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He\u2019s been involved with blue chips, consultancies &amp; SMEs across a wide variety of sectors and has worked in Europe, the Middle East and Australia. In 2007 he decided to combine his knowledge of business and IT with his passion for all things sustainable and has been busy writing ever since. 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