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CEO Charlie won’t fire Racist Rick, and that’s the entire issue.

Let me set this stage for ya.

Probably in April 2019, maybe that first weekend, my then-girlfriend, now-fiancee (!) goes to some baby shower. Later that night, a bunch of us were going to an event with burgers and beers and jazz music and the like.

I went for a run and then, because I’m very wise about how running works, I went and got some beers at a place by where I lived at the time.

Somehow, on a Saturday late morning, I start talking to this CEO of a 500-person company in North Carolina. I live in Texas. This bar is in Texas. He had been here talking to prospects and missed a flight, so he was still here and flying back later that day.

We talked for about an hour or three beers, whichever came first. (I think it was the beers.) He seemed like a good guy, but probably a little “MAGA” if you know what I mean. He did seem to care about those 500 people employed by his company, however.

One thing he said to me that always stands out, a year and a half later, is that he doesn’t understand the “Chasing Woke” or “PC Sea” movements you sometimes see.

Here’s a paraphrased quote of his:

“Business is about business. It’s about money and deals and strategy and acquisitions and market share. See, I want my people to have good lives, and good families, and afford their needs and a nice home. But part of that is like, if you come to me with a wellness program, and my best sales guy is obese, going to bars on the road, blowing coke, but he’s still selling big-time, that allows those other things to happen.”

That’s paraphrased but he did use the term “blowing coke.”

Now here’s another story

I got a friend who works HR in mid-America. There’s a dude at her company. Big performer. Makes quota and then makes it again, in Month 1 of a quarter. So, over time, as you might sadly expect, women start coming forward that he’s gropy and aggressive. Then, concurrently to that, people start coming forward about the “n-word” and other racial issues he’s spouting off, sometimes in common work areas.

Situation escalates and of course, the CEO deflects and deflects for upwards of a year. “Well, I’ll talk to him…” It goes on, and more complaints come in. Finally, about 14 months into all this, he gets a written warning.

He’s still employed, although that’s supposedly the “final step.”

But now I want you to do some math on this guy: in those 14 months, how much money has he made this company? Millions? Probably low millions, if not more than that. And those millions are helping others have a good quality of life even if their positions don’t face revenue.

So, should you ignore abuse and not report it? No.

But … a CEO is beholden to those millions and those lights staying on, and that’s why he/she is going to deflect on punishing this guy for upwards of a year, if not much longer than that.

Business is business. Social justice is social justice. The twain are not supposed to meet. Remember Michael Jordan? “Republicans buy sneakers too.”

“We put out a statement during George Floyd’s stuff.”

That’s how a lot of corporate executive types think about this moment. They did something. A statement. They checked a box. They could have done more — thrown financial heft at racism, perhaps — but they were consumed with keeping the lights on, financial reports, potential new revenue streams, and making sure balls didn’t drop on work-from-home.

We should want things to be better, but we need a path.

The focus of a company, at least a for-profit, white-collar company, will always be making money. They can commit to a more diverse talent pool or volunteer and give money to equitable causes across the spectrum, but for those things to happen, they need to be making money … or they won’t be a company anymore eventually.

As a result, the men and women who drive the making of that money essentially become untouchable internally. Racist? Ass-grabber? Ass-slapper? Homophobic? Alcoholic? Coke fiend? As long as you “ship” and “sell,” you will be taken care of under the broader umbrella of “the brand.”

CEO Charlie won’t fire Racist Rick until the house burns down 16 times around them both. So why do we think companies are the path through all this? Wouldn’t it be “the legal system,” since we need some protocols to become actual law in order for more impact to be made?

Thoughts?

Ted Bauer

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