Freeman

ARTICLE

A Duty of Management

MARCH 01, 1956 by BEN MOREELL

Admiral Moreell is Chairman of the Board of Jones and Laughlin Steel Corporation. The above statement is from an address, “The Role of American Business in Social Progress,” before the Indiana State Chamber of Commerce at Indianapolis, December 9, 1955. Copies of the address are available through the Foundation at 10¢ each.

There is a growing sense of responsibility on the part of businessmen for the support of education. There are, also, certain responsibilities of business management to its stockholders, those who have invested their savings in the business. Included among these are:

1.       Recruiting and training a labor force

2.       Procuring sources of raw materials

3.       Acquiring efficient tools and equipment

4.       Developing economical manufacturing processes

5.       Locating profitable markets, and

6.       Making a decent profit

But more important than all these is the responsibility for preservation of the stockholders’ property.

When “government ownership of industry” ideas are on the rampage, as they are now, and when the only antidote to these are “private ownership ideas,” it is the duty of management to aid educational efforts which promote private ownership ideas. By the same token, it is the duty of management to withhold aid from those educational efforts which support government ownership ideas.

ASSOCIATED ISSUE

March 1956

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Unfortunately, educating people about phenomena that are counterintuitive, not-so-easy to remember, and suggest our individual lack of human control (for starters) can seem like an uphill battle in the war of ideas. So we sally forth into a kind of wilderness, an economic fairyland. We are myth busters in a world where people crave myths more than reality. Why do they so readily embrace untruth? Primarily because the immediate costs of doing so are so low and the psychic benefits are so high.
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