[Congressional Record Volume 142, Number 134 (Wednesday, September 25, 1996)]
[Extensions of Remarks]
[Page E1687]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        CORPORATE RESPONSIBILITY

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                          HON. STENY H. HOYER

                              of maryland

                    in the house of representatives

                      Tuesday, September 24, 1996

  Mr. HOYER. Mr. Speaker, corporate downsizing and layoffs continue to 
heighten the anxiety of the American worker.
  In the new economy of the 1990's American workers can expect to 
change jobs seven or eight times throughout their careers.
  No one can guarantee American families job security--however, 
American families can be protected from the destructive consequences of 
economic change--such as families losing health insurance and losing 
pension protection. We can also offer job training to increase the 
skills of our workers facing a rapidly changing job market.
  Both President Clinton and the Democratic families first agenda call 
for initiatives to solve these problems, as well as to promote worker 
retraining and put people on the path of re-employment and higher 
wages.
  But Government cannot solve the problem of worker anxiety alone--
Corporate America must take responsibility, as well.
  The following essay by noted social commentator Paul Harvey directly 
addresses the issue of corporate responsibility. Mr. Harvey, in his 
unique style, discusses Aaron Feurstein, president of Malden Mills, who 
continued to pay his employees even after his plant burned down.
  Mr. Speaker, I commend Mr. Feurstein's actions--it is this type of 
commitment that builds security, trust and commitment between our 
Nation's workers and their employees.

               [From the Paul Harvey News, Apr. 27, 1996]

                          None of My Business

       Any business begins with an idea and grows by selling that 
     idea. It sounds simple. It is not.
       Retirement areas are studded with cheap grave markers. Pa 
     and Ma, recently retired, have always enjoyed meeting people. 
     Why not take their life savings and invest in a small retail 
     business?
       Buying and selling sounds like fun.
       But Pa and Ma and their business are likely to suffocate 
     under an avalanche of tax forms and other government required 
     documents.
       You'll see this cruel rise and fall repeated many times in 
     any shopping mall. This next relates to that, however, 
     distantly:
       These days, for any business to keep going requires further 
     investment in tax accountant, lawyers, bookkeepers and sales 
     staff.
       And on the way to incorporation on a large scale, the 
     business is likely to accumulate redundant layers of 
     bureaucracy and to leave its ``heart'' behind.
       You have sometimes been amazed at how some big corporation 
     will invest millions of dollars a year in ``public 
     relations'' then--with one heartless massive layoff of 
     workers just before Christmas--the corporation shoots itself 
     in the foot.
       A corporation has outgrown its britches when its bean-
     counters announce with pride ``record profits'' one week 
     before its labor relations lawyers are scheduled to negotiate 
     a new contract.
       What has come to be called ``corporate downsizing'' is 
     going to be a significant economic issue in the next 
     election.
       There is no way to streamline an over-bloated business 
     other than by shrinking the number of employees but unless 
     corporate giants also practice ``the golden rule'' in their 
     dealings with employees they are inviting a rude rebuke.
       Enlightened management has already learned to weigh short-
     term profits and the obligation to stockholders--and balance 
     those considerations against treating employees fairly, 
     preserving customer loyalty and maintaining an affirmative 
     public image.
       Any CEO who orders layoffs in the name of cost-cutting 
     while preserving his own multi-million dollar income intact 
     is at least unfeeling.
       Industries are going to need all the friends they can get 
     next polling time.
       One good example is worth a thousand admonitions: When 
     Malden Mills burned last December, its President Aaron 
     Feurstein vowed to rebuild and to keep all his workers on the 
     payroll.
       This icon of corporate decency has been rewarded with three 
     divisions already running again and 80% of all employees back 
     at work.
       It cost Malden Mills ten million dollars to pay those 
     workers while they are idle but, back at work, both quality 
     and efficiency are better than ever. At one plant production 
     has doubled!
       Mr. Feurstein says, ``To discard responsibility to our 
     workers and to think only of profit in the long run will 
     profit no one.''

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