Aaron Feuerstein

Fidelity

Fidelity is the understating that business decisions should remain faithful to the organization's goals and should benefit employees, clients and the public trust. Fidelity also requires loyalty to the organization and professional standards of the industry or economic environment.

Managers and employees should understand that the main purpose of business decisions is to increase the organization's wealth while providing valuable services to customers. Improving the surrounding environment or society is usually a secondary goal of business decisions. Fidelity requires managers and employees to make decisions according to their obligations or requirements of the organization.

On December 11, 1995 a fire burned most of Malden Mills to the ground and put 3,000 people out of work. Most of the 3,000 thought they were out of work permanently. A few employees were with the CEO in the parking lot during the fire and heard him say “This is not the end.” With these words began a saga that has made Aaron Feuerstein a legend among American leaders and a hero to his employees. Quotes are from Parade Magazine 9/8/96, pp. 4-5.

Conviction. The story of Malden Mills and Aaron Feuerstein is the story of leadership. Business proceeds in cycles and the most recent cycle is one in which extremely highly paid CEOs are celebrated for cutting costs, downsizing, moving plant to venues of cheap labor and delivering maximum worth to stockholders. Leadership would appear to be synonymous with profit maker.

Aaron Feuerstein spent millions keeping all 3,000 employees on the payroll with full benefits for 3 months. Why? What did he get for his money? Is he a fool? Did he have some dark motive? Here is Aaron Feuerstein’s answer: “‘The fundamental difference is that I consider our workers an asset, not an expense.’ Indeed, he believes his job goes beyond just making money for shareholders, even though the only shareholders of Malden Mills are Feuerstein and his family. ‘I have a...