Word: cleveland
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Dates: during 1940-1949
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Diagnosis. The trouble, Cleveland holds, is that the leading organization of management itself lacks proper management. Policies are set not by the membership but by a "self-perpetuating ... inner circle" of boards and committees. From 1933 to 1946, reports Cleveland, "125 corporations have held 63% of all directorships, 88% of executive committee membership . . . and 52% of the major executive offices. This group constitutes approximately 0.8% of current membership and has never exceeded...
Cure? What to do about it? First, says Cleveland, N.A.M. should have a free election of top officers, and let the membership play a bigger role. It might then adopt a code of ethics "with an eye to something more than short-run profits...
Though N.A.M. has many "forward-looking and enlightened individuals" in it, the organization's basic objectives "have not altered appreciably since the turn of the century." The objectives, according to Cleveland, have been to 1) discourage organized labor; 2) minimize the taxes on industry and managerial compensation; 3) oppose Government regulation of industry; 4) encourage public aid to industry (if it does not conflict with the first three objectives...
...group whose membership is voluntary, Cleveland admits, enforcing the code would be tough and perhaps impossible. Nevertheless, "let organized industrialists define economic abuses and act against them . . . develop adequate group controls in those industrial areas where real economic competition has ceased to exist . . . look beyond the short-run profit motive to the old but valid goals of true free enterprise. Until at least a start is made in this direction, the possibility of progressive leadership's emerging from within industry is very remote...
...Enough? In Cleveland, Mrs. Rose Koenig graduated from the eighth grade, but decided not to go on to high school, now that...