Product Description

Product Details

• Amazon Sales Rank: #1085300 in Books
• Published on: 2006-05-28
• Original language: English
• Number of items: 1
• Binding: Hardcover
• 208 pages

From Publishers Weekly
Social scientist Yankelovich (Uniting America) is a policy-minded pollster who has served on the boards such companies as CBS, ETS and US West. Here he takes stock of Enron, WorldCom, Tyco, Adelphia and other alleged bilkers, arguing that such companies are not just bad apples on a sound branch: the increasing permissiveness and deregulation of the business world, he argues, coupled with the stock market's increased emphasis on short-term shareholder value, has instigated a climate of unenlightened, all-consuming self-interest. Americans are thus faced with a stark choice between a free market or a civil society, but each vision is "radically incomplete." Arguing that the current climate for business is both harmful and unlikely to be legislated away, he proposes a new set of cultural norms dubbed "stewardship ethics"-social responsibility, but without the usual self-righteous disdain for money associated with non-profits. Yaneklovich's guidelines evoke the usual business utopia, where employees and consumers alike return to trust in the corporations, but his slim volume is more visionary than practical, leaving interested parties largely on their own when it comes to implementing his ideas on stewardship.
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.

From Booklist
Yankelovich, a social scientist, researcher, and 30-year veteran of many corporate boards and trusteeships, brings his unique perspective to the challenging topic of ethics in corporate America. Recent corporate scandals can be traced to consequences of deregulation, linking of executives' incentive compensation to the company's stock price, and the acceptability of executives winning for their own gain at everyone else's expense. Although not a new concept, Yankelovich's stewardship ethics designates profit taking as a top corporate priority along with care of employees, customers, the community, and society at large. Yankelovich's reputation and vast experience in dealing with corporate management gives authority to this road map for developing an ethical culture. He believes ethical renewal "must come company by company, led by individual CEOs who become convinced that stewardship ethics will give them a strategic competitive advantage in the marketplace and who know how to use their boards for the judgment, support^B and validation they need to implement their policies." Mary Whaley
Copyright © American Library Association. All rights reserved

Review
"Another brilliant diagnosis and a thoughtful, productive recommendation to deal with a major problem. This creative approach offers real potential for better corporate governance."-Robert A. Burnett, Chairman and CEO, Retired, Meredith Corporation (Robert A. Burnett )

"As positive and perspicacious as ever, noted public intellectual Daniel Yankelovich urges American corporations to transcend the recent scandals. In crystalline prose, he argues that a higher standard of stewardship ethics will serve the interests not only of big business but also an increasingly market-driven world."-Paul W. Drake, University of California San Diego (Paul W. Drake )

"Based on insights gained from decades of in-depth public opinion studies, Yankelovich has marshaled compelling data documenting the decline in public trust in major institutions such as government, business, medicine, and the media. In an effort to reverse this dangerous decline, he focuses on corporations that he believes must take the lead in advocating ''stewardship ethics'' as the next phase in the evolution of the corporation for the well being of both business and society."-Dorothy Zinberg, Harvard University (Dorothy Zinberg )

"Executives often argue that, in a large corporation, it is impossible to be everywhere. A few bad apples, they suggest, can ruin it for all the good people. Daniel Yankelovich contradicts that false view. Once embraced, stewardship ethics effectively places the CEO and all management everywhere-all the time. The book reviews and reveals the process-and the key."-Sidney Harman, Executive Chairman, Harman International, and author of Mind Your Own Business (Sidney Harman )

"In Profit With Honor Daniel Yankelovich takes us to the future frontiers of global capitalism, showing how companies can regain the trust of society while enhancing their earnings at the same time. He has written a short, engaging book with a very big and important idea. It should be widely read and debated by business leaders and the shareholders, employees, customers, regulators and other constituencies with whom they interact."-Jeffrey E. Garten, Juan Trippe Professor of International Trade, Finance and Business, Yale School of Management, and author of The Politics of Fortune: A New Agenda for Business Leaders (Jeffrey E. Garten )

"Not since Peter Drucker identified the shift from the traditional money capitalism of plants and equipment to the volatile capitalism of knowledge work has anyone marked a change so fundamental as Daniel Yankelovich now reports in Profit with Honor: The New Stage of Market Capitalism. Nor could anyone else weave together this book''s original sources-a world class researcher''s unique knowledge of basic value trends that drive markets and many years of pragmatic experience as director of many corporations and consultant for many more. Dan''s best book, and best written, brings compelling evidence that the flawed ethical norms of recent years will not lock multinationals into a permanent moral depression."-T. George Harris, Beliefnet.com, Psychologie Heute, Spirituality & Health Magazine (T. George Harris )

"Profit with Honor is a refreshing antidote to the Enronic plague. It charts a path to a restored confidence in the American business ethic."-Daniel Schorr, Senior News Analyst, National Public Radio (Daniel Schorr )

"Profit with Honor is an extraordinary book. Dan Yankelovich not only identifies the reasons why some of America''s best known corporations went wrong, but more importantly provides a road map for all corporations to help society, improve their image, and avoid the sins of the past. Must reading for all CEOs and Boards of Directors."-Jack D. Rehm, Chairman (retired), Meredith Corporation (Jack D. Rehm )

"This is the one book that every Chairman and CEO must read this year. With an extraordinary background as social scientist and board member, Dan Yankelovich lays out what we must do to address public mistrust of the corporation."-Ged Davis, World Economic Forum (Ged Davis )

"This volume is an informed, pragmatic and urgent wake-up call to the business, political and civic leaders of America. Its powerful and persuasive message is too vital to be ignored."-William F. Winter, Former Governor of Mississippi (William F. Winter )

"Warning that trust in business cannot be restored by regulations alone, Dan Yankelovich proposes an alternative well suited to both realistic executives and concerned citizens."-David Mathews, Kettering Foundation (David Mathews )

"Yankelovich as always is a seasoned observer and participant in the American business culture. His focus on improving ethical values in the commercial world is important and wise."-Pierson M. "Sandy" Grieve, Retired CEO, Ecolab Inc. (Pierson M. "Sandy" Grieve )

"Yankelovich gives us a vivid account of what has gone wrong in corporate America and argues that firms will succeed by including all the stakeholders-investors, employees, units in the supply chain, customers, community-together with a strong sense of ethics. A superb, well-crafted book, certain to stir debate."-Peter Gourevitch, University of California, San Diego (Peter Gourevitch )

"Yankelovich highlights the lessons business leaders can draw from and shows how combining good products and solid returns with socially responsible corporate reputations can be the recipe for success. A thoughtful and analytical view of ethics as a business fundamental and how corporate leaders can still do well for themselves and their shareholders and do good for their workers and communities."-Mack McLarty, Kissinger McLarty Associates (Mack McLarty )

Customer Reviews

Must Reading For Any Current Or Future CEO And Business Leader
This is a book I wish I had written. I have talked at length over the past few years about what is wrong with today's capitalist economy and particularly so since the Enron, Tyco, WorldCom, and other corporate scandals. However, I am and always have been a committed supporter of a free-market economy with minimal government interference. In the late 1950s (while very young!) I embraced Ayn Rand's "laissez-faire" theory of business, only to be later disturbed by some of the unwarranted and seriously problematic assumptions one had to make in order to completely buy into her "doctrine" of extreme individualism and "caveat emptor" economics. While I recognized that neither Communism (ala Marx) nor state socialism could bring about a dynamic market economy combined with political liberty, there was, I thought, definitely something missing in the theory and practice of a free-market economy as Rand and her coterie envisioned and promoted it. Moreover, the so-called "mixed economy" (which is what the U.S. pretty much has now -- a mixture of free-market and "socialist" elements) has not prevented the scandals recently experienced.

Enter Daniel Yankelovich with his new book "Profit With Honor: The New Stage of Market Capitalism." In my opinion, on the Aristotelian scale of ethical virtue, his book represents the "mean" between the extremes of a dog-eat-dog capitalism with profit as the "only" consideration and the position that profit is evil, private enterprise is antisocial and, therefore, a centrally-planned government-run economy is the only acceptable solution. Economic activity is, of course, not fundamentally different from any other human activity, whether it be individual, social, political, or whatever. There has to be some moral foundation, some ethical framework, which justifies and provides a rational structure for the activity. Neither of the aforementioned extremes can provide the necessary theoretical support nor the practical guidelines for an economic system which must take into consideration human nature and the human condition.

In his book, Yankelovich states that his "main argument . . . is that the time has come for market capitalism . . . to advance to a new stage of enlightened self-interest. American business needs to develop a new ethic -- a coherent set of social norms -- both to counteract the forces leading to the scandals and to meet the challenges of the global economy that call upon business to take on many new responsibilities." He calls his program (if that is the appropriate term) a "stewardship ethics," a set of cultural norms for business which involves social responsibility without rejecting the concepts of profit and self-interest. This is, for the most part, my position on the issue. The philosophical enemies of market capitalism have had plenty of ammunition provided to them in recent years by some of those -- dare I say "crooks"? -- who are involved in market capitalism itself. Without a solid and rational moral foundation, market capitalism becomes its own worst enemy. Yankelovich appears to be confronting this challenge and, I think, points the way to a good resolution of the problem.

There is no question now, in my view, that capitalism as it has been practiced in the past is just that -- a thing of the past. Capitalism must now advance to the "next stage of evolution," as Yankelovich envisions it. While it is vital that profit-making remain a central concern and goal of any economic enterprise, companies must also give due consideration to customers, employees, and society at large. There is really no essential conflict between making a profit (which any business must do to survive) and social responsibility. This notion of conflicting objectives was, I suspect, a matter of philosophical immaturity during the developmental growth of the capitalist system. It should be recalled that many of the so-called "robber barons" of the past did participate in philanthropic activities and contribute generously to the "social good." (Think Carnegie libraries, Ford and Rockefeller foundations.)

But, of course, the problem remains regarding the future of market capitalism, especially amid all the recent scandals. This is where I think Yankelovich makes his most noteworthy contribution. Abstract principles of ethics -- which is what many of us were primarily concerned with when I taught classes in ethical theory in years past -- is one thing. Important as that is, however, the application of ethical principles to practical situations, institutions, and social realities is, after all, of immediate concern. What Yankelovich provides is an extension of rational ethical principles into the marketplace, that is, where the action is and where they are most useful. There is no justification now for schools of business and departments of economics to ignore the moral and social ramifications of market activities; courses in business ethics, and I suggest maybe the "stewardship ethics" recommended in this book, ought to be a core part of the curriculum -- not just an elective, but a requirement.

"Profit With Honor" is, of course, not a full-blown treatise on business ethics. It is a short book, a mere 169 pages of actual text. It is, however, concise and to the point. Yankelovich's suggestion that market capitalism should adopt the idea of "doing well by doing good" comes across throughout the book and this idea needs to be internalized by anyone considering a future in business leadership. He concludes: "In our culture . . . the transformation to stewardship ethics may take place without even being widely noticed. But its effects will register in enhanced trust in the business sector, in improved long-term profitability, and in significant advances in global well-being." One can only hope what he says proves prophetic. This book is an excellent introduction to the problem at hand and, for many of us I suspect, a framework within which the practical solution to the problem can be realized. Must reading for any contemporary or future CEO. Highly recommended.

Should Be In Every Boardroom
This book is about ethics and integrity in corporate America. The author discusses the various scandals of the past decade or so, looks at root causes, and proposes a solution.

This book could easily have been a statist prescription for yet more regulation by that whacko entity we call the federal government (which doesn't actually govern), but fortunately it was not. Just as easily, it could have been yet another book used by the author to push the leftist agenda in the rosiest of terms, despite the fact that agenda has always failed and always will. Fortunately, we were spared that reality-challenged view as well. Nor is it another effort to push the "conservative" agenda (basically, a way of diverting money to special interests). In fact, Yankelovich stresses the need to move beyond political "solutions" to problems.

People change careers, and I am one of those people. In my former life as an engineer (in a galaxy far, far away or something to that effect), one of the skills I learned was root cause analysis. This kind of analysis is demonstrably absent in public policy, as is evident from the demonstrable failure of federal policies, federal agencies, federal programs, and just about anything else spewing forth from Washington, DC. I notice that most "experts" have pretty logical-sounding solutions to what ails us, but almost none of them first determines what problem needs solving. They have a hammer (their area of expertise), and the whole world is their nail.

Yankelovich takes a humbler and more rational approach. This book talks about what CEOs and other leaders should do to restore integrity in our corporations, yet in the preface he says he's neither a celebrated CEO nor an expert on the subject. Upon reading the book, I found this worked to his advantage. He's not an armchair general type, either, though. He was on many boards over many years and has seen the workings of the inner sanctum firsthand. His background as a social scientist and researcher is also a critical qualification, because he has an excellent lens through which to observe and analyze.

At 169 pages in paperback format, this book is short. It's not a highly detailed academic treatise on case histories. Yankelovich is certainly capable of producing such an opus. But it would be read by academics rather than CEOs. This book is the perfect size for its primary target audience--the high level corporate executive. It can fit into a briefcase for reading during a return flight or two.

Profit with Honor has ten chapters. The first two give us a clear picture of the problem. In those chapters, Yankelovich also discusses why legal remedies don't work. For example, if you have a law barring a certain behavior, people who believe it's OK to game the system will find and exploit a loophole. To see how this pans out, look no further than our insane, and counterproductive, federal income tax code. He also talks about what happens when a company promises to play nice and then doesn't.

The next two chapters explain why "What's good for GM is good for America" isn't so (not to pick on GM--that was the actual statement, but the sentiment was quickly adopted by other companies). Yankelovich also provides comparisons between the ethics of today (or lack thereof) to the ethics of previous times. This isn't a "sure was great in the good old days" fantasy. Yankelovich bases his analysis on actual research, including a study of the Harvard Business School Class of 1949.

What he has to say about "civil society" in Chapter Five is right on target, and should be required reading for everyone over the age of six. Unfortunately, we have too few adults with the proper training in civility, and we gag on that aftertaste of that every day.

Chapter Six and Chapter Seven provide a good discussion of stewardship ethics, which Yankelovich proposes as the means of getting our corporations back on track.

In Chapter Eight, Yankelovich exposes the fallacy of the "Shareholder Value" philosophy, leaving no doubt for the reader that it has proven to be costly and destructive. Chapter Nine explores the concept of gatekeeper integrity. Our gatekeepers include institutional investors, auditors, business lawyers, investment bankers, business journalists, and educators--and they have profoundly failed us.

The final chapter, Titled "Hummer vs. Hybrid" nicely ties the book's concepts together. What better way to make things clear than to use a common example and figuratively turn it over in your hand so that each edge, nook, and cranny is exposed to sunlight? This example concerns the attitudes of two companies. The first one is GM, which I loathe. The second is Toyota, of which I am a customer and a huge fan.

GM chased short-term profits by producing gas-guzzling Hummers. Thanks to GM lobbyists, the CONgress (which sells legislation to the highest bidder) introduced more distortions into that abomination called "the federal income tax code" to make it advantageous for people to own Hummers rather than a vehicle that makes sense. Hummers tear up our roads (causing us to pay higher road taxes) and consume four times the fuel that a sensible vehicle does (causing gas prices to be higher). So, we all pay for some insecure person to drive around in a Hummer dominating the road while GM managers soak up their bonuses for short-term profits and Middle East terrorists enjoy the funding provided by the additional oil revenue. All perfectly legal.

Toyota, on the other hand, behaved responsibly by producing the fuel-efficient Prius hybrid. It's important to note that this isn't their only fuel-efficient vehicle. My Camry gets nearly 40 MPG on the highway (5-speed manual transmission, good driving habits, synthetic oil, and other things boost its fuel economy past the EPA rating). Some other models of conventially-powered Toyotas, such as the Corolla, do even better.

If we replaced every GM vehicle with a Toyota Camry, America would no longer have an energy problem.

Toyota's venture into the hybrid market came at the cost of short-term losses. This car isn't a cash cow for them, and it isn't causing their executives to go home with multi-million dollar bonuses. It's part of the their long-term strategy to build cars that serve people and society. It's the result of their "continual improvement" ethic.

Yankelovich follows this same ethic in his writing. He isn't proposing a quick fix. He's proposing a change in underlying attitudes and beliefs, and it takes time for those things to produce effects. It's like eating right vs. taking medications. Eating right won't instantly make you healthy, if you are presently not eating right. But it's the only way to be healthy and correcting the effects of wrong behavior takes time.

It's also a monumental task to get all the players on board with such a change. If this book makes its way into boardrooms and executive suites across the country, and if individuals in those boardrooms and executive suites decide to make personal integrity a top priority ala the Class of 1949, that change can and will happen.

If you like the idea of a nation in which corporations are run in an ethical fashion (providing a model the federal "government" might learn from), read this book and then recommend it to others.

Yankelovich as an independent observer and "good government" advocate who walks his talk
I won't expand on the good service done by the two lengthy reviews of Yankelovich's book, especially that by Lamendola (who, among other things, does serious readers the favor of summarizing content in detail). What I want to do is make some larger observations abou

Yankelovich is one of the rare "good guy" writers on social-political subjects who is not hooked on an ideology, and is not primarily concerned with personal image building. He wants to get to the true story and solve problems. Having been an authoritative pollster for many years, Yankelovich has an exceptionally broad background. Probably realizing the damage done by our adversarial political climate in the U.S. Yankelovich has taken the step of setting up something like a unique web site PUBLIC AGENDA, which invites diverse opinion and insights to look at important U.S. policy problems.

The bad news is that prior to my review there were only three other reviews of Yankelovich's 2006 book. Compare that to any of the hard-breathing books on either the left or the right e.g.

Al Franken: Lies and the Lying Liars Who Tell Them: A Fair and Balanced Look at the Right 3,031 reviews
Ann Coulter: If Democrats Had Any Brains, They'd Be Republicans 390 reviews
Mark Steyn: America Alone 543 reviews

Andred Bacevic, formerly a Colonel in the U.S. Army and now a historian at Boston University could be considered as another writer who takes an independent, politically even-handed approach in his searing analysis of what he regards as the U.S.'s hubris and blindness in conducting its foreign policy since 1960. His recent book, The Limits of Power, has garnered 179 reviews.

Is this a good sign? Not necessarily. I suspect that the greater interest in Bacevic's book is that he blasts American intervention in Iraq, and is a strong opponent to the current Afghanistan war. In other words, he feeds the emotional partisanship of liberals (?) against the Iraq war, and who now are turning against Afghanistan.