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Abe, Charlie and The Man

A lobbyist visited Abraham Lincoln one day, so the story goes. When the president was ready for the visitor, a big man with powerful backers, his personal secretary, we'll call him Charlie, let the man in. The lobbyist had a proposition for the president, and as we already know--because we know all about lobbyists--it was dastardly proposition.

Charlie was able to overhear as the voices grew louder. "Three thousand dollars?" asked the lobbyist.

"No sir," replied the president.

"Five thousand then."

"Good day, sir, it is time for you to leave."

"Ten Thousand Dollars!?"

With that, the door to the Oval Office flew open and the president brought the man into the foyer. "Please see this man out, Charlie, right now."

Charlie had not caught the details of the proposal, but he caught the general drift. Later that day, after transcribing a letter for the president, Charlie lingered before leaving.

"Yes, Charlie, what is it?"

"I would just like to say, Mr. President, that I am constantly inspired by your character, by your ability to resist...."

"Do not idolize me, Charlie," interrupted the president, "the man was approaching my price."

Temptation exists. Human frailty exists. We all have a price.

One of the keys, then, is to pay attention to how we build our systems, how we structure rewards, how we define purpose and function.

We have not-for-profit organizations and for-profit businesses. What is the purpose of a for-profit business?

Profit.

We start businesses with the best of intentions. If we are smart and lucky and we persevere, we start to succeed. We do well while doing good. By the time the big man visits us, everything--our friends, the culture, the checkbook balance--everything has reinforced the message that we are a success, that we deserve whatever it is that the big man has to offer. Why? Because we have served our purpose. We have made a profit.

What, now, are we to say to those of us who have done very well while doing good? What are we to say to those of us who have played the game by the rules and played it well? Are we to tell them that their buyout is their sellout?

Nah.

We all have a price.

Instead what if we changed the rules of the game? What if the exclusive purpose of business was not profit? What if the purpose of business was service? What would that game look like?

That game would look like the cooperative business model. And it is a winning game.

Cooperatives are businesses that are owned and controlled by their members. They exist to serve their members' economic interests. While cooperatives are economically self-sustaining and able to turn a profit like any other businesses, their purpose is service, not profit. Since cooperatives are democratically controlled by their members on the basis of one member, one vote, they are seldom bought out. Members equitably share in business proceeds with no one member benefiting vastly beyond the others, hence cooperatives seldom sellout.

We could change the rules of the game in other ways as well. We could begin to expect companies to internalize costs. We could have our elected leaders step up to the plate. There are many bright people out there with many good ideas, Paul Hawken, Bill McKibben and Robert Reich to name only a few.

It wasn't Abe Lincoln's ability to resist temptation that saved him. And that is not what stirs us about the story. He was human and he knew it. He did not fall to hubris. And that ironically is worth idolizing.

Charlie got it right after all.
On Umbra on green-company buyouts posted 1 year, 9 months ago 13 Responses