Janet CollinsIs Greed Ever Good?
May 1st 2009 05:20
Michael Douglas as Gordon Gekko
Whether or not greed is good, particularly when it comes to business, is really dependent upon what the trend is at any given time. Greed can certainly seduce and motivate but if you were to ask if greed is a good thing or if it is bad, the answer would probably depend on what year you were asking the question.
What got me thinking about this was the talk this week about a new Wall Street movie. Oliver Stone and Michael Douglas are to do a follow up to the 1987 movie on corporate greed that delivered Michael Douglas an Academy Award.
The movie is about a financier and corporate raider and we follow him through the movie to his ultimate demise. The final words of Gekko’s speech to the shareholders of Teldar Paper are ones that has kept the movie alive for the past few decades:
“Greed – for lack of a better word – is good. Greed is right. Greed works. Greed clarifies, cuts through and captures the essence of the evolutionary spirit. Greed, in all of its forms – greed for life, for money, for love, knowledge – has marked the upward surge of mankind. And greed – you mark my words – will not only save Teldar Paper but that other malfunctioning corporation called the USA.
“Greed is Good” has been the subject of a lot of debate over and over since the movie but unlike Gekko’s intention, the words are often used as a condemnation of greed rather than a promoter of it.
That’s why Wall Street was so successful of course. It was the timing. The stock market crashed in 1987 so all of a sudden the eighties reflected the decade of corporate greed and making the quick buck.
Greed and the speedy acquisition of wealth that had been applauded throughout most the decade was all of a sudden being condemned. Worship and admiration of the corporate gurus at the helm of some of America’s biggest quickly turned to anger.
A story that exposed Wall Street and all the institutions that represented the worst side of capitalism was certainly giving a world wide audience something they wanted to see. It was a story of greed over ethics and the culture that had invaded Corporate America but the crash of ’87 and the corporate collapses that followed were quickly forgotten.
The new attitude didn’t last a real long time and business schools and colleges grew in numbers and popularity despite the plummeting reputations of corporate CEOs and industry leaders. Nothing had really changed much in the way of business modelling and the corporate world still acquired even more obnoxious pay packets, even if the crass displays of wealth were a little more concealed for a while there.
Now in 2009 while the world is going into freefall, attitudes are again changing. Greed is suddenly scorned again. What could be a better time for a follow up story?
There is nowhere else that reflects better our attitude to business and greed than the daily news. That said, the way it is reported and the attitude to greed changes regularly depending on the economic conditions of the day. Just looking at some of the current topics and opinions about business highlights how commentary and social attitudes to business and ethics tend to turn sharp corners when things go bad.
An article in March of this year by Peter Walker of the UK’s Observer, focussed on the schools that churned out these ambitious and driven financiers and stockbrokers.
Walker’s article questioned whether or not, or even how much, the top ranking international business schools, providing students with prized MBA qualifications had played a part - or even been responsible - for the current economic fiasco. Even some of the lecturers condemned the teachings, one even going so far as to say the schools were not teaching but indoctrinating the students on the power of risk.
Some of the top ranking institutions are now having quite a bit of reflection even so much as to make some rather significant changes to their MBA programs.
These changed formats are not just simply an upgrade or an update to aged programs but more because of a fear that the courses will no longer be popular. Social attitudes, they acknowledge, have now changed and younger ones are contemplating careers that will give their lives more meaning rather than ones that will earn them the most money. You would really have to wonder if these attitudes are likely to hang around for too long. They haven’t before.
The difference is of course that the current recession is far worse that the one two decades ago and the business models that have been taught to, or even indoctrinated, students over the past few decades no longer have any credit or standing. Heading some of the biggest corporate collapses have been CEOs with top MBA qualifications from some of the most lauded institutions such as Harvard.
That doesn’t necessarily mean that in the future, greed may once again be seen as a valuable ingredient for success but it doesn’t mean that it isn’t an ethos that won’t return. Back in 2005 when there was no hint of a recession or downturn of any kind and anyone would have been laughed out of a room for suggesting it, John Stossel and Marc Dorian wrote and article “When Is Greed Good?” for ABC online.
The article was subtitled “Money Motive Can Create Better Public Services and Revitalize Classrooms” and included interviews with many, like Gekko, who praised the motive of greed. It motivates, it drives creativity and innovation. It makes things more efficient. These are all the things they were saying then but would they say that now?
This argument was backed up by an American economist, Walter Williams saying that in the US the areas that people are most satisfied with are those that are motivated by greed such as supermarkets and computers. The areas people are more motivated by caring, he says, such as education, the post office, city garbage collection and police services are in total disaster.
Steve Mariotti, a primary school teacher who had left his import/export business to become a teacher because of the “appalling” grades at the school was quoted as saying that he changed the programs to incorporate making money and the kids became far more motivated and interested in learning.
Mariotti’s belief is that “children born into poverty are fascinated by capitalism and by ownership and by markets” and that “capitalism is the big equalizer”.
This article is vastly different in tone and commentary to the Walker’s article in The Observer. The articles of course were at very different times but as the original movie captured a time when greed was despised it didn’t take long for greed to be ignored and even admired.
So now greed is despised again. It will be interesting to see in the future if this attitude lasts any longer than it did before. The time it takes to make a comeback probably depends on how long the economy takes to recover. It's bound to come back into vogue again, but while millions upon millions are losing their jobs world wide every day, it is really becoming increasingly unlikely that it will have too quick a revival this time.
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Comment by Morgan Bell
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greed is not good
Comment by samaritan
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Both times I tried to type greed there, I typed green instead and had to go back and correct it. Green's good. Green's fine. Greed's bad.
Samaritan
Comment by Janet Collins
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I have never agreed that it can ever be good but it is surprising just how many people in business, including some who are not very far up the ladder, would agree that greed is necessary to success. You watch, in a few years time they will probably be doing exactly as they were doing the last decade, and no-one will care.
Thanks
Comment by Janet Collins
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I don't think greed is ever good and yes, it relates to just about everything. It is very interesting how, for the most part of the last two decades, most people just turned a blind eye to what was going on in business.It was as if the end justified the means. Now that the eventual end has been such a blow out, the means just cannot be justified anymore.
Your cake example was a good one by the way.
Thank you.
Comment by Norm
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I think that if it's a battle between good and evil.
Greed can't be good.
Is greed necessary?
Maybe. Maybe.
Maybe?
Comment by Janet Collins
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When times are good and things are thriving there seems to be an acceptance of greed in business, almost as if they are inseparable but when things go bad, greed is condemned. You are right. It can't be good so why do we all put up with it?
Thank you.
Comment by Norm
Consumption Malfunction
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I can't believe babies aren't born greedy, either.
At the moment, I can't.
Comment by Janet Collins
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Is greedy for goodness something like a) taking from the rich to give to the poor or b) being greedy for the sake of your organisation, not for you personally ; or c) none of the above?
How can you even think a defenceless little baby can be greedy - attention seeking maybe - but greedy?
Comment by stevegann
Comment by Janet Collins
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I thought the movie was a really good one too. That is not to say that I agree that greed is good but I think greed and ambition and often the same and the trouble is that greed takes over and becomes unstoppable. That's what we are all suffering for now.
Appreciate the comment.
Comment by Hu Phlung Pu