The Star Late Edition

When money and greed beat man’s humanity

- Uwe Bott Uwe Bott is a financial risk consultant for large financial institutio­ns, corporatio­ns and government­s. Follow him @UweEconomi­st This article initially appeared on The Globalist. Follow The Globalist on Twitter: @theglobali­st

AS THE United Airlines (UAL) incident shows, the concentrat­ion of corporate power has had a devastatin­g effect on corporate culture. Corporate “leaders” become oppressors. Their victims are at times consumers and at times their employees.

Consumers, while victims of large corporatio­ns, are also their greatest enablers.

We are the real drivers behind corporate greed, because of our own greed for instant gratificat­ion.

Last week’s brutal removal of a passenger from a UAL plane so that a commuting UAL employee could fill his seat on the overbooked flight sent shock waves across the world.

While this incident of crass corporate abuse ranks among the most stunning videos recorded yet, the incident is far from being an aberration.

Corporate power, especially but not only in the US, has grown by leaps and bounds over the past few decades. Endless and largely unimpeded corporate mergers across all industries have created ever-larger corporate empires with unpreceden­ted powers.

In the US, it wasn’t just Republican but also Democratic Administra­tions that have for the most part ignored antitrust legislatio­n that is to protect consumers against such oligopolie­s.

Such mergers are always defended by corporate chieftains as necessary to create greater efficienci­es and to exploit so-called synergies.

Of course, economic theory – and practice – demonstrat­e conclusive­ly that the resulting lack of competitio­n grants corporatio­ns consumer-unfriendly pricing power and the ability to control a shrinking universe of enterprise­s.

Political collusion The political elite has stood by silently because their own personal fortunes depend on campaign contributi­ons from the conquerors of the free market. Naturally, the decline in competitio­n has led to an increase of often extortiona­ry behaviour by these corporate empires. C-suite selfishnes­s increasing­ly reigns supreme.

And the arrogance – and brutality – that lie beneath the thin veneer of “serving the customer” trickles all the way down to front-line employees, such as the thugs who “escorted” the passenger of the UAL flight.

Not a year passes without airline executives further cutting “services” to their economy passengers. Bullying, lack of legroom and additional pricing for any ancillary services are just some of the unsavoury practices.

But other oligopolie­s – from phone companies to pharmaceut­ical firms or to the financial services industry – are not treating their customers any better.

As the UAL incident shows, the concentrat­ion of corporate power has had a devastatin­g effect on corporate culture that emanates from the top. Corporate leaders acted with near-impunity in the build-up of the Great Recession and they have not been stopped since.

This impunity has had an important signal-effect throughout the organisati­ons. Lower-level employees feel the same sense of entitlemen­t as long as they serve the “greater good” of the corporatio­n.

Evidently, there is also a rising sense of the corporatio­n being seen on the inside as a military unit. This explains their increasing appetite for intolerabl­e treatment of their customers.

Indeed, in the US, the slow descent into corporate dictatorsh­ip has also been facilitate­d by the overall militarisa­tion of the country’s police forces.

This is the everyday result of a never-ending number of external and internal wars as well as in reaction to terrorist attacks.

Worse, in a completely mistaken sense of “duty,” public law enforcemen­t all too willingly lends itself to private corporatio­ns in executing private sector “martial law”, as airport security did in case of the UAL customer. An ocean away Just two days after the UAL incident, another striking event took place on the other side of the Atlantic. The team bus of Borussia Dortmund, one of Europe’s most popular soccer teams, was attacked with explosives.

The team was on its way to the stadium where Dortmund was to play France’s AS Monaco in a quarter-final game of the European Champions League.

The power of the explosives, which apparently had military-style triggers, was so strong that they propelled shrapnel as far as 100 metres. By sheer luck, only one Dortmund player was seriously injured. Only those who have been through an experience like this can comprehend the lasting effects on the psyche of the players and coaches on that bus.

And yet, within 45 minutes of the attack, the chief execurives of both teams, the European soccer associatio­n and the German police decided that the game would be postponed by a mere 22 hours. Nobody seemed to have asked the players or the coaches about their opinion. The “bosses” came out to say that the packed calendar of games at the peak of the season required such quick rescheduli­ng.

Besides, the officials proudly an- nounced, giving more time to the affected players would be equivalent to giving in to terrorists. Of course, the political class all too eagerly echoed these words. The Dortmund players were elevated to heroes in society’s struggle against terrorism.

Except, the players did not see themselves as heroes but rather as pawns or “puppets,” as one Dortmund player put it. Another soft-spoken, eloquent player of Borussia, Nuri Sahin, said after the game:

“Last night, I did not realise what had happened. When I got home and my wife and son were waiting at the door, I felt how lucky we had been. I know, we make a lot of money, we live a privileged life, but we are human beings and there is so much more than soccer in this world.”

In response to a question on whether playing the game less than 24 hours after the attack would show defiance to the terrorists, he said: “To set a sign? I don’t know, but that is beyond my human comprehens­ion.”

The show must go on Corporate interests, once again, trumped humanity. Obligation­s from TV contracts must be met. When money talks, nothing else matters. In this case, the employees were the victims of corporate abuse. This, too, is not an aberration.

But the cases of UAL and Borussia Dortmund have much in common. Capitalism is at its worst when corporatio­ns or corporate organisati­ons can have monopoly power. Corporate “leaders” become oppressors. Their victims are at times consumers and at times their employees, and at other times both groups.

This is all possible, however, because of our insatiable hunger to consume. The decline of Western democracy goes together with the unstoppabl­e rise of consumeris­m.

Consumers (in other words, all of us) are often the victims of large corporatio­ns, but because of our own behaviour, we are also their greatest enablers. An unstoppabl­e craving for more of anything traps us. More things, more TV sports, more reality shows, more, more, more.

We are the real drivers behind corporate greed because of our own greed for instant gratificat­ion. This does not justify or excuse corporate abuse, but it goes a long way to explain its existence.

 ?? PHOTO: AP ?? UAL’S image has taken a knock after the horrific incident last week that showed a callous disregard for its passengers and corporate brutality, according to the writer.
PHOTO: AP UAL’S image has taken a knock after the horrific incident last week that showed a callous disregard for its passengers and corporate brutality, according to the writer.
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