Sunday, December 11, 2016

The Making of a Tyrant



Nearly all of the polls got it wrong.  Most of the “objective” journalists got it wrong.  And as I listen to the reports regarding how Trump is responding to being the President-elect, they are getting it wrong again.  We now have a man who will be President of the United States on January 20, 2017 that has never held political office, served in the military and is averse to attention to detail.  For only the fourth time in U. S. history we will have a President who did not garner a plurality of the popular vote.  As of December 11, 2016 Clinton has received 65,737,041 (48.08%) and Trump 62,896,704 (46.00%).  The difference in the popular vote gives Trump a deficit of 2,840,337 votes.  A vote total of 46% means that 54%, a clear majority of voters, cast ballots against Trump.  As of January 21st we will have a President of a democracy that received a minority of the votes in the general election.

So how did we get here?  To truly understand how we got here we have to look back.  When Obama was elected President in 2008 it signaled a dramatic change for the country that was reflective of our changing demographics.  The U.S is rapidly becoming a more ethnically diverse country.  It is now expected that in just 28 years (2044) persons of European decent will account for less than 50% of the population of the United States.  Historically, the dominant culture of the U. S. has been that of white Americans.  With the changing demographics there is increasing pressure for Americans (white and otherwise) to be more accepting of differences and treat people from different ethnic backgrounds as full equals as human beings.  There is increasing pressure for all Americans to become more interculturally competent.  For many Americans (white, African American, Asian, Latino, etc.) the process has already begun and much progress has been made.  However, for many white Americans, who have had limited exposure to other ethnicities, it is a very difficult transition.  For those Americans, the increasing diversity is experienced as a threat to the world as they know it.  They are absolutely correct.  America will never be the same again.  The changes that are occurring are irreversible.  Once that threshold is crossed in 2044 we will never go back. 

Much of the white American population that is experiencing their world coming to an end were traumatized by having an African American President.  Trauma is not an intellectual experience.  Trauma has nothing to do with political ideology or partisan politics.  Trauma is what triggers a flight or fight response.  Trauma produces intense emotional responses and leaves emotional scars.  The part of our brain that experiences trauma and emotions is not the same part that engages in rational thought and emotional regulation.  The result after President Obama was elected was a large part of the country attempting to deal with psychological trauma and intense emotion.  Their world was ending and they did not know what to do about it.  The Tea Party attempted to address the trauma from a political stand point and in 2010 Republicans gained a majority in the House of Representatives.  However, their political solution was not emotionally satisfying to this group of Americans that required an intense emotional boost.  Whether this emotional boost was based on rational thought or reality was inconsequential.  It was in this atmosphere that Donald Trump became the voice of the birther movement.  The basis for this historical confrontation between Trump and President Obama was established.  Trump was very vocal in questioning the legitimacy of President Obama that was primarily targeted on the suggestion that President Obama was not a natural born American citizen and therefore not eligible to be president of the U. S. 

For those looking for something to grab on to that would ease their emotional trauma the question of President Obama’s legitimacy served as a soothing elixir.  Very quickly, an overwhelming majority of Republican voters accepted the theory and professed doubts about the legitimacy of President Obama.  Even as recently as this past summer (2016), an NBC News|SurveyMonkey poll conducted in late June and early July of more than 1,700 registered voters, only 27 percent of Republicans agreed with the statement that Obama was born in the U.S.  We must remember that in 2009 President Obama released a copy of the short form of his birth certificate.  Then in 2011, in an attempt to put the birther issue to rest, he released the long form of his birth certificate.  However, when dealing with emotional trauma rational thinking is not engaged.  Provable facts supported by legitimate documents become meaningless.  Thus, Trump rode this wave of irrationality into becoming the Republican nominee for President and the President-elect of the U.S. 

Most of the national media and analysts are biased toward rationality and facts (as they should be).  Good journalists are guided by the pursuit of verifiable factual information.  Understanding the subtleties of emotional trauma is not a priority of most journalists.  Most journalists expect the facts to speak for themselves. Trump’s style has been the opposite of the pursuit of verifiable facts.  For his followers it was not necessary nor useful.  Trump’s followers were not looking for insightful or meaningful policy.  They were not looking for rational arguments regarding how to improve America.  Emotionally traumatized people respond to emotional support.  Emotionally traumatized people are attracted to the person that promises to restore what they believe they lost.  It is often related to safety and security.  Trump’s official entry into the Presidential campaign identified a threat that he will deal with that comes from the outside.  He framed it in a way that is comforting to those who feel threatened.  His slogan “Make America Great Again” implies a restoration of something that was lost.  During his acceptance speech at the Republican Convention he proclaimed “I alone can fix it.”  His whole campaign has contained the message that he represents a forgotten or overlooked group and he will be their champion.  His approach and over the top messaging was perfect for vulnerable emotionally traumatized persons experiencing a need for a savior.  No logic required. 

Trump seemed to intuitively understand who is audience was and how to reach them.  He seemed to understand that his appeal had to be emotional and not rational.  He acknowledged this understanding when he said “I could go down to 5th Avenue and shoot someone and they would still vote for me.”  Most leaders are not comfortable with such loyalty.  Most leaders are not comfortable with followers whose loyalty is emotionally based with little or no rational component.  Most leaders are not comfortable with such loyalty because it is ultimately impossible to fully satisfy the emotional needs of such followers.  Trump, however, is not among most leaders.  He is extremely narcissistic and very self-serving.  While he seems to be able to sense how others are feeling and thinking he has little use for empathy.  His ability to understanding others is used as a means to manipulate others for his own purposes.  Throughout most of his life his own purposes have revolved around enriching himself and engaging in pleasurable experiences.

Now he finds himself in a situation that he has never encountered in his entire life.  At 70 years old, after having lived a life of excess and pleasurable pursuits, he is the President-elect of the United States of America.  Needless to say he is totally and completely unprepared for this reality.  Just as he enriched himself by lending his name and reputation to Trump University while the students were being defrauded, he has once again (on a much larger and more serious scale) established the basis for committing fraud.  He has once again made an emotional appeal to vulnerable people and provided false hope and made false promises.  Ultimately, Trump University was recognized as a fraud by its victims.  While many journalists, pundits, politicians, activists, previous victims and others have attempted to sound the alarm, his followers only grew more attached and protective of their champion.  Now we have an unprepared President-elect who will be unable to deliver on his false promises.  That is where things can get harry.  Trump is not a young man who would be willing to cram all the info he needs to do the job of President.  He is an elderly man whose habits have served him well.  Having the expectation that being president would result in a change of his underlying personality is extremely unrealistic (and very naïve).  So what should we expect?

Trump’s inner circle is filled with people whose views and ideas that are far out of the mainstream.  When he finds himself incapable of meeting the challenges of the job his first response will be to turn to these individuals for advice and counsel.  In reality his primary confidants are his children (Ivanka and her husband, Eric, and Donald, Jr.).  They translate the world for him.  They have the capability and temperament to pay attention to the details.  He has relied on them heavily to run his businesses.  He trusts them.  Trump being President without his children close by is like being an English speaker in a foreign country without a translator.  He will keep them close at all costs. 

Trump also has his Svengali in Steve Bannon.  Mr. Bannon has been the “silent” behind the scenes adviser who has had Trump’s ear throughout the campaign.  Mr. Bannon has aligned himself with persons who believe in the genetic superiority of the white race.  He will tell you that he does not hate non-white people and he may be speaking a truth (sort of).  However, when you believe that you are superior to others, by definition those others do not matter as much as you do.  When others do not matter it becomes very easy to dismiss the needs of those others, very easy to subjugate others, very easy to mistreat others, very easy to scapegoat those others and become paternalistic about being able to solve their problems.  Mr. Bannon’s beliefs fit hand and glove with Trump’s narcissism.  Trump enjoys the idea that he has a superior intellect, superior negotiating skills and superior stamina.  Remember, “He alone will save America”. 

The final piece of the puzzle is the Republican majorities in the House and Senate.  They have been seduced by the fact that Trump was able to do something that they believed could not be done.  The Republicans, whether they trust Trump or not, want to bask in his national support and celebrity among their constituencies.  They want to exploit the political power and opportunity afforded with having a Republican in the White House and majorities in the House and Senate.  The only problem is that Trump and his people may not play the game by their rules.

Once we begin counting the first 100 days we will begin to witness and understand that a tyrant can be born out of a democratic government.  All the elements of secrecy, paranoia and closed inner circles will be present.  Donald Trump who has never been one to follow traditions, protocol, rules or even laws will quickly be completely overwhelmed and when he is overwhelmed we can expect to see his grab for power.  The first sign will be that he will stop giving press conferences and making himself available to the press.  Breeches of protocol will become more and more numerous.  Conflicts with Republican leaders will become apparent.  We will know that he has totally lost it when we see the first inappropriate tweet coming directly from President Trump.  Power grabs will become more numerous.  Protests against Trump will increase and Trump will respond with force to quell any opposition.

His Republican colleagues will hesitate to confront him directly or challenge his power grabs.  He will become increasingly frustrated and paranoid when Congress does not implement his proposals.  By six months as President he will be at the breaking point.  Reince Priebus will resign as Chief of Staff but be unwilling to go public as he attempts to strategize with Republicans regarding how to prevent a total breakdown in the Executive Branch.  Trump’s children will be his only calming force, but it will be too late.  He will be at the point of a complete breakdown but unwilling to admit to any problem.  He will blame everyone else including Pence.  Bannon will attempt to work with the Trump children to help prop him up just enough to stay in office.  By January of 2018 an impeachment process will have begun in Congress.  Trump will react by becoming fully tyrannical and attempt to stay in power out of anger.  Trump will become like a cornered wild animal, striking out at anyone that comes near.  His wife will leave the Whitehouse and move back to New York with Barron.  The intensity and stress of the situation after a year will begin to manifest as physical breakdowns as well as psychological breakdowns.  Trump will not emerge psychologically intact. His grip on reality will be totally destroyed.  It will be the ultimate test of our democracy. 

Saturday, May 3, 2014

Bride Price and Polygamy in Africa


I have found that sometimes in order to truly understand a difference, I must be willing to let go of my own frame of reference and immerse myself into the frames of reference of the culture I am experiencing.  In doing so, I am able to see cultural practices and behaviors from a new perspective.  Having said that and knowing that most Americans may not have done so when it comes the role of women in the context of African cultures, let me begin by describing some of the things that were a part of my experience of a traditional cultural wedding in my wife's home village of Ubulu-Okiti (Delta State, Nigeria).  The practices that continue to take place today are based on practices that have existed for 100s if not 1000s of years.  However, they are adapted to modern realities.  Thus, they have become ceremonial in practice but represent the core values and beliefs of the people.  One of the things that was a big part of marriage process was the negotiation and payment of the "bride price."  On the surface from an American perspective it might sound like the man must buy his wife.   However, the "bride price" has more to do with reinforcing the connection that the woman has with here community as a valued member, than actual compensation for her removal.  Ibo or Igbo culture like other sub-Saharan African cultures are very collectively oriented as opposed to the more individualized orientation of American culture.  When the man pays a "bride price" he is acknowledging that his wife has been a highly valued member of the community and he will honor that value.

Having said that, it is also the reality that Igbos exist in a global community that includes many cultural perspectives.  While villagers may be quite comfortable with how power is shared between men and women in village affairs, Igbo men and women working in the city or for a global corporation must be willing to adapt to differing perspectives of the role of women in society.  One of the things that I have found that is present within Igbo culture, that assists with such adjustments, is the fact that the culture tends to be very high context.  The actual practice and outcomes are more important than the rules, details or traditions.  It is precisely this high context orientation that allows for adaptation to western influence without totally abandoning age old cultural traditions.  The tolerance for variation is very high.  As a result, in Nigeria, the Muslim north is more adherent to cultural rules and customs than the Christian south but less than Muslim countries like Pakistan or Saudi Arabia.

Finally, you may have heard about Kenya's President signing into law legislation that officially recognizes polygamy (Karimi and Leposo, 2014).  On the surface, to Americans, such a law sounds like a huge step backwards for women.  However, when it is viewed within context, I can see why the law passed.  Persons who are most likely to engage in polygamy are those men who are traditional village rulers.  These men are often educated and hold a healthy degree of respect and influence in communities outside of their own village.  The reality is that, for such men it would be a disgrace if they did not practice polygamy.  They would actually lose the respect of people in the community (even from those that did not believe in the practice of polygamy for themselves).  Since this influential group of village rulers transcends regions and ethnic groups their views are likely to be respected by politicians.  The result, an African country flexes its cultural independence muscles and once again officially recognizes an age old cultural practice.

Reference

Karimi, F. and Leposo, L. (2014). New Kenya law legalizes polygamy; women's group applauds it. CNN. Retrieved from http://edition.cnn.com/2014/05/01/world/africa/kenya-polygamy-law/

Cultural PTSD in Academics


As an undergraduate student in the 70s at what was then Claremont Men’s College (CMC), now Claremont McKenna College, I was an active student.  I majored in psychology, ran track, participated in other intramural sports, was active with the Black Student’s Union (BSU) and worked with the local Upward Bound program tutoring high school students.  In general I enjoyed my years at CMC in spite of the many challenges faced.  There were a relatively small number of Black students at the Claremont Colleges and most of us got to know each other. 

Black Studies courses were offered through the Claremont University Center (CUC) but the professors that taught the courses were hired as adjunct faculty and were not eligible for tenure.  Even though Black Studies courses were offered, a major in Black Studies was not an option.  Nevertheless, I took as many Black Studies courses as I could, including courses in literature, psychology, history, sociology and political science.  While enrolled in a Black Psychology course I attempted to have a discussion with one of my white psychology professors about Black Psychology.  Her response was confusion.  From her perspective there could be only one human psychology.  I attempted to explain how differing cultural values, language, beliefs and attitudes resulted in differing patterns of thinking and behavior and to understand these differences it was necessary to study them as a unique subject.  She didn’t buy it. 

During that semester I turned in a paper, to this same professor, that I had worked on really hard.  She graded it with a “C.”  Her reaction when I discussed what I thought was a poor grade was to tell me “a “C” is not a bad grade.”  I knew that for her a “C” would have been the same as an “F.”  The unspoken message was that “a “C” is not a bad grade for a Black student.”  She refused to reconsider the grade and I walked away feeling defeated. 

In another incident while protesting plans by CUC to discontinue the Black and Chicano Admissions Office, at a meeting involving the Provost and other high ranking professors, one of the professors stated in response to our demands that “Black and Chicano Admissions had outlived its usefulness.”  One of my most memorable experiences that resulted from being a Black student on a predominantly White campus was being stopped and questioned by campus security one evening while on the way to the library at Harvey Mudd College (one of the five campuses of the Claremont Colleges).  These and other incidents would be described now as “microaggressions” (Sue, Capodilupo, and Holder, 2008).  What I didn’t realize at the time is that they would become the basis of what I am calling Cultural PTSD in Academics.

I only became aware of the damage that had been done when a new incident triggered a flood of memories and emotions from those days.  Currently, I am a doctoral student at the University of the Rockies.  I am pursuing a PsyD with a specialty in International Leadership.  I am in my 16th out 17 courses and have maintained a 4.0 GPA.  I will very soon begin work on my dissertation.  The triggering incident took place recently in my current class, Globalization & Diversity in Cultures.  I had been looking forward to this class for quite some time.  I had been impressed in general since returning to school and discovering that there is much more openness regarding discussing diversity issues in the classroom.  I have really enjoyed taking all the courses, reading and learning about globalization, African Economic Development, diplomacy and more.  And then I started this course.

First of all, the course guide for this course is a little out of date and targeted toward students that are at a basic entry level when it comes to diversity in cultures.  I have been involved in studying one aspect of this topic or another since 1980.  I have travelled internationally and live in Hilo, Hawaii. There are people and cultures present here in Hawaii from places most people on the mainland US have never heard of.  I entered the class knowing that I am already at high level of expertise on the subject.  I expected, as had been the case in nearly all of my previous classes, that the professor would be flexible enough to acknowledge the level of expertise of the students and make adjustments accordingly.  The only other student in the class is a man of Latino origins in his mid-40s who is bi-lingual and with extensive international business experience.  We are not novices.  Yet, the professor seemed reluctant to acknowledge that we are very advanced students.

Then it happened, after getting a lower than expected grade on my first paper, I worked hard to incorporate her suggestions to get a better grade on the second paper.  I got a worse grade. She wrote in her comments:

 
I am very concerned about the lack of application of citation to proprietary information, in one section in particular as highlighted.  Remember, your reader can only review what is written, not what is intended.  However unintentional, your writing must be protected from plagiarism, which means the ability to pass off information that is not ours as our own. Your writing includes many paragraphs with proprietary information yet there is no attempt at citation.  I know this is not what you may have intended, however that is what is presented.  Remember, to protect ALL proprietary information EVERY time.  It is possible that EVERY sentence may have a citation, or multiple citations to support the evidence offered.
 
Remember, U of R has a zero tolerance policy and our classes are audited.  I prefer to work with the student then submit to the Ethics Review Board.

 
What?!!  Plagiarism?!!  Ethics Review Board?!!  What is going on?

I have never in my life had my name associated with the word plagiarism.  I reviewed how I used in-text citations in the paper.  I reviewed the requirements from the APA manual.  The APA manual does not include how frequently in a paragraph an in-text citation must be present.  I have never had a professor that interpreted the APA standard as meaning every sentence in a paragraph should include a citation. 

I did speak with her and she stuck to her guns. I believe at most she could have criticized my paper as including a technical error in the frequency of my in-text citations.  When I re-read my paper it was abundantly clear where the information came from that I was paraphrasing.  There is no way that anyone would think that I had engaged in plagiarism unintentionally or otherwise.  Credit was given to the appropriate writers.

I had to go through a process of becoming grounded before speaking to her directly so that I would not lose my cool.  I knew I had to present myself as very confident and knowledgeable (which I am).  What I did not know until later was how profoundly impacted I was from this incident.  The following day after speaking with her I literally became sick to my stomach and could not work.  Today is two days since I spoke with her and I am still feeling shaky.  I feel violated and demeaned.  The memories of all the microaggressions from undergraduate school at CMC have come flooding back.  Needless to say I am very disappointed.  The class I thought would be one of the most enjoyable classes has become my worse class.  I have reported the incident to my Academic Adviser and sent her a copy of the paper with the comments.  For now I will continue in the class and continue to do my normal high quality of work.  I hope that the professor heard some of what I said during our phone conversation because my patience only goes so far.  It will be me taking her the Ethics Review Board and not the other way around. What she did, unintentional or not, was abusive.  I will not tolerate any further abuse.

Reference

Sue, D. W., Capodilupo, C. M. and Holder, A. M. B. (2008).  Racial microaggressions in the life experience of black americans.  Professional Psychology: Research and Practice, 39(3), 329–336.  doi: 10.1037/0735-7028.39.3.329

Thursday, February 27, 2014

A Global Leadership Plan for the Haitian Textile Industry: The Challenge of Establishing Universal Ethical Business Practice


Abstract
An analysis of the current status of ethical business practice is provided.  The ethics emanating from the Fair Trade movement is given by way of summarizing the story of the experiences of Frans van der Hoff in Southern Mexico.  The leadership he provided led to the development of the Union of Indian Villages in the Isthmus Region (UCIRI) coffee growers cooperative (Audebrand & Pauchant, 2009).  As a result of the development of the UCIRI, the lives and status of the surrounding community improved.  The ethics of Corporate Social Responsibility (CSR) is exemplified by a discussion of the Global Corporate Ethic Manifesto which promotes an ethic based on acknowledging the humanity of all involved (Hemphill & Lillevik, 2011).  These ideas are then applied to the development of a plan for Global Leadership that would reverse trends in the Haitian textile industry where current conditions are inhumane and directly and indirectly supported by major retailers of the U.S.  This seemingly impossible task is broken down into a vision and 5 Steps that are consistent with the ethical principles that have emerged from the Fair Trade movement and the Global Corporate Ethic Manifesto.


The history of the Americas could be described as turbulent and even chaotic at times.  Skidmore, Smith & Green (2010) describe Latin America as the most socially and economically stratified region of the world. Most of the countries of the Americas have seen repeated sudden and often violent regime change.  Such turbulence and chaos has undoubtedly contributed to the uneven economic development between North and South America.  Romero (2004) has described the dominant leadership style in Latin America as el Patron, which can be characterized as autocratic and directive, rarely uses delegation or teamwork, and communication is top-down.  The el Patron leader is expected to be assertive and aggressive but avoids conflict and is relationship oriented.  Such a leadership style is consistent with descriptions of transactional leadership where relationships are well defined and the focus is more on task management and reciprocal agreement (Kunungo, 2001).  On the other hand Romero (2004) describes el Lider Moderno as supportive and participative, delegation and the use of teams is common, and the leader values cooperation and collaboration.  This description is consistent the transformational leadership style which is more oriented toward collective work and responsibility.  The transformational leader encourages creativity and is comfortable with ambiguity.  Creativity, ambiguity and even dissent are viewed as characteristics that could lead to innovation and a higher level problem solving.  In fashioning a global leadership plan for a country in the Americas, when the leader is confronted with uncertainty, turbulence and even chaos, the characteristics of the transformational style are likely to be more effective.  The el Patron or transactional style is likely to have more difficulty making the necessary adjustments to change in the global market place.

A second major issue in the global market place is ethics.  The leader of a global business must be directly involved in the development of both the ethics of governance and the governance of ethics.  Rossouw (2009a) defines the ethics of governance as the values and assumptions that serve as the foundation for guiding a corporation’s ethical behavior.  The governance of ethics relates to the methods employed to assure that such ethics are adhered to.  Rossouw, in discussing ethics, also describes internal and external corporate governance.  Internal corporate governance refers to aspects of defining ethical behavior that are within the control of the corporation such as its mission and values statement or internal ethical review boards.  External corporate governance refers to guidelines or regulations that govern corporate ethical behavior that come from outside sources such as national, international laws or treaties, and industry standards.  Rossouw (2009b) raises the question of whether there is a convergence or divergence in the development of a global ethics of governance.  He concludes that for the most part the evolution of the ethics of corporate governance represents a divergence as opposed to a convergence.  He leaves unresolved the question of whether a global standard for ethical corporate practice should be or could be established.  The issue of a global or universal ethical business practice is one of the focuses of this paper.  In discussing the issue of establishing a universal ethical business practice Fair Trade and Corporate Social Responsibility are discussed.  Globally there has been an increasing presence of the establishment of such approaches.

Another question that must be addressed in the process of developing a global leadership plan is how would the plan interface with the realities of neoliberalism.  Are such practices as Fair Trade in conflict with neoliberalism?  Additionally, such a plan must be developed within a realistic context of how much support is needed and/or available from regulatory authorities at both a national and global level.  Armed with a thorough analysis of the aforementioned factors a leadership plan is presented.

Ethics Defined

The word ethic is actually a neutral word.  By itself it does not point to a particular set of practices or definitions regarding good or bad; right or wrong.  According to the Merriam-Webster (2014) online dictionary, the word ethic is defined as meaning “rules of behavior based on ideas about what is morally good and bad.”  Ethics is defined as meaning “an area of study that deals with ideas about what is good and bad behavior: a branch of philosophy dealing with what is morally right or wrong.”  To refer to ethical behavior is simply to suggest that the behavior is guided by some established guidelines that define good or bad; right or wrong.  What is actually good or bad; right or wrong is actually a matter of perspective or choice. 

In Rossouw’s (2009a) discussion of the ethics of corporate governance, the source of ethical guidelines depends on whose interests are being served.  In the case of many U. S. corporations the shareholders’ interests are paramount.  Thus, ethical standards are established from the perspective of the shareholder.  In Europe, the perspective is widened to include other stakeholders such as employees or customers.  In Africa and China the perspective for input into ethical guidelines often extends to the entire community.  Rossouw (2009a; 2009b) does not attempt to resolve the question of whether there is or can be a universal ethical practice for business.  The fact that this question is left unresolved within the global market is very problematic.  Corporations that have established ethical practice standards from the perspective of the shareholders can easily find ways to have high sounding ethical guidelines and values that are not applied universally within their supply chains.  A prime example is Walmart.  In its published Statement of Ethics (Walmart, 2008) it is indicated that third parties such as suppliers are included.  The section referring to third parties states “Walmart expects its suppliers, consultants, law firms, public relations firms, contractors, and other service providers to act ethically and in a manner consistent with this Statement of Ethics. If you hire a service provider, you should take reasonable steps to make sure the service provider is aware of our Statement of Ethics, has a reputation for integrity, and acts in a responsible manner consistent with our standards”(Walmart, 2008, p. 6).  However, a recent report by the Worker Rights Consortium (2013) provides detailed data that tells a different story. The Worker Rights Consortium is a 12-year-old independent labor rights group financed by 180 American colleges and universities, including Harvard, Stanford and the University of Michigan. In the report Walmart is identified as one among many U. S. retailers that receives clothing from Haitian clothing factories that fail to pay the Haitian minimum wage to its employees.  Additionally, a recent report published by the International Labour Organization (ILO) and International Finance Corporation (IFC) found that 23 out of 23 clothing factories that supply garments to Walmart and other retailers failed to pay its workers the legal minimum wage (Better Work, 2013).  The ILO and IFC are funded by the governments of the United States and Canada.  The intention, since they began their involvement in monitoring labor force standards around the world was to be a catalyst for the improvement of conditions for workers and the reduction of exploitation and unethical practices.   With ample evidence of worker mistreatment, Walmart and other U. S. retailers continue to do business with the offending suppliers in spite of the violation of their stated ethical guidelines.

The situation in Haiti is particularly egregious because the $6.90 per day minimum wage for piece work in clothing factories takes place in a country where the actual cost of living is the same (or in some cases higher) as the cost of living in the U. S.  Wal-Mart, Target, Kohl’s, or any of the other U. S. retailers that are supplied by the Haitian factories would consider an attempt to pay employees at a rate of $6.90 per day a gross ethical violation.  It would simply be unthinkable.  Somehow the ethical standards related to reasonable pay are completely compromised when the worker lives in Haiti. 

One of the first tasks in developing a global leadership plan in the Americas is to establish a minimum ethical standard that will not evaporate over time and distance.  However, this first task is also the first and biggest challenge.  If, for example, I am a clothing manufacturer in Haiti and paid my workers enough to actually lift them out of poverty, I would not stay in business very long if all of my competitors are experiencing labor costs that are a fraction of what I would be budgeting.  Nevertheless, if a plan is to be truly meaningful it must incorporate a strategy that raises the standards for everyone.  The establishment of a truly universal ethical minimum standard for business practices must not be viewed as an impossibility or as an expendable item in comprehensive plan, but as a necessity.  Ethical business practice must be informed by basic minimums in the rights and conditions of human beings.  For example, anyone who works 40 or more hours per week must earn a minimum wage above the poverty level. That is, such an individual should be able to attain the basic necessities of food, clothing and shelter from the fruits of their labor.

Fair Trade as a Model of Ethical Business Practice

Fair Trade in the contemporary retail market is a term that is applied to products that have been certified by the Fairtrade Labelling Organizations International (FLO) as meeting certain minimum standards in how the product was produced.  Typically, the certification indicates that the product was a result of fair treatment of producers and workers and that the processes used to produce the product were environmentally friendly (Arnould, Plastina & Ball, 2009).   While Fair Trade is often traced back to the years shortly after World War II, it reached its maturity in development in the free market with the establishment of a coffee cooperative in Southern Mexico (Audebrand & Pauchant, 2009). 

The story begins with a Dutch priest, Frans van der Hoff, who arrived in the slums of Mexico City in 1973.  Although he was a priest, he often publically expressed dissatisfaction with the Church’s support of dictator’s such as Pinochet, in Chile, or the fact that Catholic Bishops visited the slums in luxury cars (Audebrand & Pauchant, 2009).  To ensure his independence and to more closely link himself with disadvantaged workers, he became a worker- priest and worked a number of jobs, such as travelling shoe salesman, jam maker, axle producer at Ford and farmer.  In 1980 he moved to Ixtepec in the southern state of Oaxaca, where 80% of the population is native.  Death threats from the secret police in Mexico City prompted his move.  In Ixtepec he worked for two years as a day laborer on the coffee farms.  In 1982 he became more involved with the plight of the coffee growers, not by proposing a solution but by facilitating a collective assessment of the problem.  Coffee growers in Mexico, not unlike growers throughout Latin America, were at the mercy of the international coffee market prices and the intermediaries known as “coyotes.”  The coyotes bought the coffee from the growers at prices far below the market value and then sold it on the international market for the prevailing price.  The result was that when the price dropped the growers could not make enough money to pay their expenses.  Having no mechanism for credit to tide them over, many growers would have to temporarily leave their farms and head to the city to search for employment.  Even when prices were better the growers could only manage a meager existence.  For the farm workers it meant living in perpetual poverty whether prices were up or down (Audebrand & Pauchant, 2009).

The local community accepted von der Hoff’s proposal to complete an analysis of their situation.  Among the results of the analysis was the recognition that the community could benefit from being organized into a cooperative and the Union of Indian Villages in the Isthmus Region (UCIRI) was created in 1983.  The first priority for UCIRI was to purchase a truck so that they could bypass the coyotes and go directly to the international market.  The next priority was to work out arrangements with the local banks to obtain credit, so that they would be protected against the ups and downs of the coffee market prices.  Needless to say the coyotes did not take kindly to the growers asserting themselves in the coffee market.  For the next ten years there were many acts of sabotage and violence against the community resulting in the death of 37 villagers.  With the support of the UCIRI, the community persevered and used their additional profits to improve the infrastructure of the community.  Roads were constructed, clean water and electricity became more available and dwellings grew to sizes that were more appropriate for the number of people housed in them (Audebrand & Pauchant, 2009).

Van der Hoff utilized connections he had in the Netherlands to partner with a coffee retailer and establish what has become known as the first Fair Trade coffee brand, Max Havelaar.  In addition to the financial benefits for the producers, workers and community there were also environmental benefits.  The traditional values of the native people called for a respect for the land as well as the people.  The number one objective was replenishment and sustainability.  Typically, coffee growers, in order to maximize output would cut down all trees on a plantation and grow as many coffee plants as possible per hectare.  The result would be that after about seven years the soil would become barren and unable to produce almost anything for many years.  Following the traditions of the native people, many trees were left in place.  The number of coffee plants per hectare was far less than a “conventional” coffee farm, yet the net income for the growers was far more, not to mention that after seven years there were no worries about the soil becoming barren.

Thus the basic ethical principles and guidelines for what has become known as Fair Trade were established.  They are as follows:

Direct Trade - limit the number of intermediaries between the producer and the consumer.

Fair Prices and Wages - slightly higher than the market price, which covers not only the economic costs related to production of a good or service but also the social and environmental costs.

Long-term Orientation - commitment to sustainable and transparent relations between economic partners.

Technical and Financial Support - this support can take the  form of pre-financing that allows producers to live comfortably between crops, guarantees a minimum purchase price despite stock market fluctuations, and provides technical aid to improve work and management methods.

Democratic Management of Producing Organizations - most often based on the co-operative model. Work co-operatives offer several advantages, including member participation in decision making and reinvestment of surpluses in community projects.

Support Sustainable Development - preserve biodiversity and renewable natural resources by promoting poly-culture, avoiding pesticides and chemical fertilizers, and decreasing pollution and waste.

Promote Consumer Education on Responsible Consumption - all FT partners are encouraged to carry out educational activities to raise awareness among consumers, the general public, companies and political decision makers.

 
Support for Fair Trade Principles

The Fair Trade principles and their development, as described above, established the basis for a universal ethic for business.  The Fair Trade movement has sometimes been referred to as Alternative Trade.  The reality is that it represents not an alternative to neoliberalism but simply a shift in the power dynamic of the supply chain.  Gendron, Bisaillon & Rance (2009) argue that while there are debates within factions of the Fair Trade movement related to the benefits of commercialization, it has nevertheless been institutionalized on a global level.  As a result of the institutionalization of Fair Trade, the ethical compass of the corporate world has been shifted.  Since the establishment of the UCIRI, many other coffee producers who had previously been victimized by exploitation have organized into cooperatives.  The establishment of the International Labour Organization (ILO), the International Finance Corporation (IFC) and of course the Fairtrade Labelling Organizations International (FLO) indicates the institutionalization of Fair Trade and its principles.  The ILO and the IFC have the support of the United Nations and the World Bank.  Support of these well-established and well-respected international institutions does not mean that Fair Trade principles will be instantly adopted by everyone.  However, even during the recent recession participation in Fair Trade certification and the associated profits continued to grow (Hutchens, 2011).  In 2008 the total market grew by 22% to a value of $3.98 billion and by another 15% in 2009 to ta total value of $4.7 billion.

Research evaluating consumer response to the Fair Trade movement is likewise favorable.  Bondy & Talwar (2011) found that an increasing number of consumers are willing to make purchases that are heavily influenced by their ethical convictions and thus were more likely to be loyal to Fair Trade products even when times were tough.  Stratton & Werner (2013) found that simply by using labels promoting Fair Trade products resulted in an increase in sales of the product.  Such examples suggest that consumers are interested in purchasing products that are more consistent with their personal ethical standards.  The question is; are the global corporations that make billions in profits from their retail sales, ready to adopt similar ethical standards? 

Corporate Social Responsibility

At the opposite end of the supply chain are the global corporate manufacturers and retailers.  Parallel to the Fair Trade movement has been the development of Corporate Social Responsibility (CSR).  CSR can be described as “a firm’s voluntary actions to mitigate and remedy social and environmental consequences of its operation” (Fransen, 2013, p. 213).  It has become increasingly common for large global corporations to pay more attention to the ethical practice of one’s own company and of those the company engages in the process of conducting its business.  However, the pattern for many large global corporations is to implement CSR by supporting local charities, funding local building projects (hospitals or schools) or contributing considerable resources to environmental clean-up or repair.  It is far less likely that CSR would involve making adjustments in its supply chain that would have a direct financial impact on the individuals and families that are exploited as a result of unethical labor practices.  CSR policies tend to avoid the issue of decommodification of labor (Huo, Nelson & Stephens, 2008).  The UCIRI cooperative established in Southern Mexico is an example of decommodification of labor.  The coffee growers and their employees found a way to not treat their labor as a commodity that was separate from the value of the individual.  Decommodification allows for individuals to continue being valued whether there is a demand for their labor or not.  Once labor was decommodified the periodic migrations to the city stopped.  Workers and growers no longer had to rely on selling their labor as a commodity in order to make ends meet. 

In spite of the fact that CSR has not fully evolved to the point where a corporation like Walmart would refuse to be supplied by companies that engage in inhumane treatment of their employees, the pressure is building from both consumers and respected international organizations for global corporations to implement ethical practice standards that are sensitive to the needs of all humans involved in their supply chain (Hemphill & Lillevik, 2011).   Nevertheless, the increase in the presence of CSR and the recent development of a Global Corporate Ethic Manifesto that parallels the Fair Trade principles tends to suggest that some level of convergence in relation to ethical governance and principles is in process.

Towards a Universal Business Ethic

The Global Corporate Ethic Manifesto discussed by Hemphill & Lillevik (2011) lays out very clearly a business practice ethic that is based on a full acknowledgement of the humanity of every individual involved in the supply chain as well as members of the community in general.  The basic values of the Manifesto are as follows (extracted from Hemphill & Lillevik, 2011, p. 215-217):

I. The principle of humanity

The fundamental principle of a desirable global economic ethic is humanity: Being human must be the ethical yardstick for all economic action.

II. The basic values of non-violence and respect for life

Every people, every race, every religion must show tolerance and respect – indeed high appreciation – for every other. Minorities – be they racial, ethnic, or religious – require protection and support by the majority.

III. Basic values of justice and solidarity

To be an authentic human being means – in the spirit of the great religious and ethical traditions – not misusing economic and political power in a ruthless struggle for domination, but instead using power in the service of all human beings. Therefore, mutual respect, reasonable coordination of interests, and the will to conciliate and to show consideration must prevail.

IV. Basic values of honesty and tolerance

To be authentically human in the spirit of our great religious and ethical traditions means that we must not confuse freedom with arbitrariness or pluralism with indifference to truth. We must cultivate integrity and truthfulness in all our relationships instead of dishonesty, dissembling, and opportunism.

V. Basic values of mutual esteem and partnership

We need mutual respect, partnership, and understanding, instead of patriarchal domination and degradation, which are expressions of violence and engender counter-violence. Every individual has intrinsic dignity and inalienable rights, and each has an inescapable responsibility for what she or he does and does not do.

 
The above basic values are recommended to global corporations to serve as guiding principles for ethical practice around the world.  The degree to which a particular corporation embraces such values and strives to have them incorporated into the culture of  the organization is entirely dependent on the leadership of the organization and the vision the leaders have, for not only their corporation but for humanity as well.

A Global Leadership Plan Based on a Universal Business Ethic

Bennis (2009) identifies four essential competencies for all leaders.  The first one is vision.  A leader must have a vision that can be communicated to others in such a way that others adopt it as their own.  The second competency is a distinctive voice.  A distinctive voice is a combination of characteristics that include self-confidence, sense of purpose, and a sense of self.  A distinctive voice is what makes contact with the leader memorable.  It includes the leader’s ability to connect with others.  The third competency is integrity.  An effective leader must be trustworthy and demonstrate through actions that truth, honesty, fair-mindedness and other characteristics are of the utmost value.  The fourth and final competency is adaptive capability.  We live in a world that is changing at an increasing pace.  The ability to adapt quickly and effectively to change is absolutely essential.  Adaptive capability also includes a leader’s ability to hear and welcome criticism and dissent.  When things appear to be going well, we may have a tendency to overlook vulnerabilities or threats.  A leader with good adaptive capability creates an atmosphere and organizational culture that welcomes criticism and dissent and then discerns from it prudent adjustments.  On the other end, the competency of adaptive capability also results in the creation of an atmosphere and organizational culture that welcomes and encourages creativity and innovation in both thoughts and action.  Armed with the knowledge of these four competencies and the ethical principles derived from the Fair Trade movement and the Global Corporate Ethic Manifesto a leadership plan involving the textile industry in Haiti is proposed.

A Global Leadership Plan for the Haitian Textile Industry

If ever there was a need for bold ethical leadership within the textile industry, such a need exists in Haiti.  The plan being proposed will be centered within the Haitian textile industry.  In 2009, knit and woven apparel accounted for 92% of Haiti's exports and 9% of its GDP (Better Work, 2013).  The workers in the textile industry work for a minimum wage equivalent to no more than $6.90 per day.  That amount does not come close to covering the most basic living expenses.  Once the cost of getting to work and eating each day while at work is subtracted most workers are left with less than $2 per day.  As pointed out above, actual prices in Haiti converted to dollars make the cost of living in Haiti similar to the U.S.  In fact, many items are priced higher in Haiti.  For example, gasoline is $1.27 per liter or $5.08 per gallon.  Average rent for a 1 bedroom apartment outside of the city is $562.  Families must live in substandard housing or share living quarters with several families in order to have a roof over their heads.  Under no stretch of ethical business practice would such conditions be acceptable for employees working 40 or more hours per week.  Yet, in Haiti it is the current situation and continues relatively unquestioned in spite of the presence of international monitors from at least three foreign governments.

 

The Vision

Workers in the Haitian textile industry are treated with dignity and respect and are able to earn a livable wage.

The Plan Model

The plan for realizing the vision is modeled after the activities and experiences of Frans van der Hoff in Southern Mexico.  Thus, a serious attempt to provide leadership that would be accepted and respected would require that the leader establish credibility by being a part of the community and speak the languages (French and Creole). 

Step 1 – Create an Alternative Model

Unlike Southern Mexico, the interests of the workers and the factory owners are divergent.  The workers’ labor is treated as a commodity that the factories owners purchase at the lowest possible price.  One way of decommodifying the labor of the workers is to create an alternative supply chain that bypassed the conventional structures and placed ownership of a textile factory in the hands of the community.  The factory would be run by a democratically elected board made up of workers and other community members.  If necessary, the board could solicit the assistance of technical advisors and trainers in establishing all of the necessary factory management protocols.

Step 2 – Education, Marketing, Public Relations

The U.S. is by far the biggest importer of Haitian textile products.  Research has already shown that U. S. consumers are likely to pay a little more for “Fair Trade” or ethically produced products when products are labeled as such (Bondy & Talwar, 2011; Stratton & Werner, 2013).   The objective is not to put the conventional factories out of business but to increase demand for Fair Trade textiles so that conventional factories would begin to identify the financial opportunities of converting to Fair Trade textile manufacturing and duplicate the model of the alternative supply chain.  Such a shift would require careful and clever use of the multimedia platforms available via the internet and other sources.  The education, marketing and public relations efforts would have to be well organized, highly polished, and clearly focused. 

Step 3 – Demonstrate Clear Positive Results

The first group of people that must experience positive results are the workers and their families.  The families in Southern Mexico experienced an improvement in their standard of living and became completely committed to the new way of doing things, in spite of a decade of attacks and even 37 assassinations.  Their commitment stemmed from the fact that they were empowered with the ability to improve their lives themselves.  They experienced a real change in their reality.  The same result would occur when the families and community of the Haitian textile workers experience such empowerment and implement changes in their lives and standard of living.

Step 4 – Strengthen and Expand the Supply Chain

Perhaps the most important activity for any business is the establishment of strong reciprocal relationships.  A supply chain in any industry exists because of what is exchanged and continues because of satisfaction with the quality not only of the product, but also satisfaction with the quality of the relationship.  In this model the primary relationship is with the community.  The community is the source of the labor and commitment that allows the supply chain to exist. Next, the relationship with buyers and retailers is also paramount.  Maintaining strong relationships with representatives up and down the supply chain is critical. 

Step 5 – Export the Model - “If you want to keep it, you have to give it away”

Sharing the model with others in Central and South America (and other parts of the world) would also be critical to sustainability.  Honest and ethical business practices that actually result in substantial improvement in the lives of those involved can be catching in the global market that touts Corporate Social Responsibility and Fair Trade.  Sharing with the world the stories of the lives that are transformed through ethical standards that put the lives of humans first is like a pool of fresh water for the thirsty; an increasing number of individuals and companies will want to take a drink.

Conclusion

Bennis (2009) placed an emphasis on “mastering the content” (p. 1, p.185).  The point is that the successful leader understands the prevailing culture even when much of the culture is latent.  Currently, as has been discussed above, there are forces emanating from both ends of the global business supply chain that are pointing toward a more human oriented basis for ethical practice.  The Fair Trade movement grew out of the circumstances of those who were exploited and documents such as The Global Economic Ethic Manifesto originated with those involved in global corporations who seek to have a positive impact on the lives of the humans that the global corporations are involved with.  In spite of the fact that Rossouw (2009b) might argue that a convergence of ethical practice is not taking place, it appears that such a convergence is indeed taking place, only not in the way Rossouw would have anticipated.  Ultimately, there is a reality that we are all aware of but not always cognizant of; we are one people living on one planet.  

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