Perhaps, the
“Father of Corporate
Social Responsibility” was Henry Ford. One hundred years ago, in 1914,
Henry Ford
stunned the industrial world by more than doubling wages to $5 a day. As
a result of this progressive move, Henry Ford helped build America’s
middle class
and create today’s consumer-driven economy. He also put his Ford brand
on the
path to great success by endearing his company to every American family.
It’s now time for this generation of
business leaders to follow in Henry Ford’s visionary footsteps and practice CSR
by raising the minimum wage to a “living wage.”
And, what should that wage be? According to MIT’s Living Wage Calculator,
it varies from city to city across our nation. But, regardless of the wage amount,
the goal must be to lift people above the poverty line and expand America’s
middle class so that we can experience a sustained economic recovery and ensure
prosperity for the next twenty years. To calculate your city or state’s living
wage, visit: http://livingwage.mit.edu/
Here are three living wage examples.
In San Diego, the MIT Living Wage Calculator calls for $11.38 per hour or $23,671
per year. In Atlanta, it’s $10.10 per hour or $21,007. In New York City’s Queen
Borough, it’s $12.75 or $26,521 per year. None of these wages are outside the
boundaries of fair and reasonable compensation.
Can any prudent business leader or
entrepreneur seriously argue that raising the minimum wage to a “living wage” will
“break the bank?” If so, I would question that leader’s logic and standard of
fairness. I would also ask them to live on $7.50 - $8.25 an hour for the next
30 days to see how it feels to struggle in the trenches of corporate America to
make ends meet. I’m sure their opinions of what is “fair and reasonable” would
change quickly.
If we truly believe that our nation
stands for Life, Liberty and the Pursuit of Happiness, doesn’t part of that sacred
covenant also ensure that minimum wage earners deserve a fighting chance to
experience the American Dream? If not, then greed and arrogance will rule us.
Let’s set aside the politics and
arguments of greed to come together and strengthen America’s middle class. Let’s
follow Henry Ford’s lead and do the right thing. Actually, according to the
American Consumer Council, raising the minimum wage makes good business sense.
By boosting the minimum wage, companies will help expand the middle class and empower
more consumers. This will create more spending and help to create higher corporate
profits. That’s good for businesses, shareholders and investors.
As the power shifts from the
corporation to the consumer, it’s time for business leaders to stand up for consumers
by ensuring a living wage for all workers. It’s time to rebuild America’s
middle class.
About the Author:
Thomas Hinton is president of the American Consumer Council, a
non-profit consumer education organization with over 145,000 members. He
can be reached at: tom@americanconsumercouncil.org
