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Understanding Social Forces

Posted on 25th January 2012

social forces in business
by haylesyable under CC BY 

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Some four years after the strike the business head of the firm testified in a public hearing that he should scarcely know how to conduct his business without the organization which now obtains for dealing collectively with labor. He also in the same hearing expressed the view that a large employer is a trustee of the public, responsible for the measure of public welfare in which his business results; and this man, remember, is not a reformer or even a radical, but just a successful business man.

In this bit of labor history there were, no doubt, many fortunate but uncontrollable factors which, otherwise combined, would have brought a less happy result. But two things stand out: first, the laborers listened to wise counsel—they were well led; and second, the employers, when they consented to make an agreement, gave the plan adopted their genuine support. Combining good citizenship with business sense they were able to understand the new social influences that make the formulas of 1880 a poor gauge of efficiency factors in 1910. They are now enjoying the benefits of their willingness to learn.

The effect of social forces is seen under different circumstances and from an entirely different angle in the present halting policy of American railroads.  Here, in addition to other social elements in the question, is the fact of definite government control. This circumstance has accustomed railway managers to look at both the internal and the public factors in their success. A number of years ago, before Mr. Justice Brandeis became a member of the Supreme Court, he pointed out, as many others have since done, that the railroads were looking too much to the government factor, and too little to the economy and effectiveness of their own internal administration. Even though we concede this point, it is still clear that the highest efficiency of our railroads must wait upon a clarification of policy with respect to the great social fact affecting railway operation—the fact of government control. We may not approve the precise manner in which the railroads respond to this fact, but obviously they cannot be efficient and ignore it.