Why work with a "lefty" group?

I have been an expert witness in more than one dozen cases involving the Greenlining Institute over the last several decades. This includes testifying against SBC, AT&T, PG&E, and the insurance industry on issues involving excessive executive compensation, ethics, marketing fraud, financial disclosure and consumer protection.

The outside world often perceives of Greenlining, a multiethnic coalition of more than three dozen minority business, civil rights, immigrant service and church groups, as a lefty operation. But I am decidedly no lefty.

So, how do I reconcile being a great fan of commerce and being an active supporter and participant with Greenlining?

I like Greenlining’s goals and I like their funding solution.

America is one of the most meritocratic societies on the planet. But meritocracy can be impeded by habit and tradition…and meritocracy is frequently impeded in the corporate world regarding minorities. Greenlining sets out to remedy that problem.

Greenlining customarily negotiates with corporations to increase the minority representation on Boards of Directors, in management, among suppliers and in charitable giving. Each of these areas is bound by habit and tradition. Meritocracy is often the unwitting victim.

Board members are usually chosen from friends of current board members---that isn’t meritocratic and it is not in the interests of any corporation doing business in a diversified society. Exactly the same thing applies to promotion in management where it is easier to promote a fellow worker who looks and acts like you. Problem is: minority workers who see all white management don’t feel that the corporation is meritocratic. And they are right.

Choice of suppliers is always a matter of continuing to do business with old friends; those habits of friendship must be broken if meritocracy is to prevail in a dynamic business world. You seldom get the best prices and the best service from cronyism.

Charitable contributions by corporations are disproportionately awarded to universities attended by management and local symphonies and operas that provide status for executives. A dubious value to the corporation in an environment where the majority of workers are from minority groups.

Greenlining always presents options and opportunities to corporations when they are blinded to business reality by established practices and habits. A good case was AT&T in the early 1980s.

AT&T failed to see the potential market for phone calls by Mexicans and Mexican-Americans to Mexico. Greenlining saw a need for Spanish language operators to promote phone calls across the border. AT&T said the costs were too high and the revenue too little. A year after pressure by Greenlining to add Spanish language operations, AT&T reported a new increase in profits from the phone calls to Mexico of $200 million. Ever since then the relationship between Greenlining and AT&T has been good. AT&T frequently asked for advice on minority business markets.

Most corporations that Greenlining targets for improvement in minority relations end up having a close relationship to Greenlining because of the business value added. Greenlining is a trusted door to new markets.

This positive business insight that Greenlining provides is related to a major part of Greenlining’s revenue.

Greenlining raises the hackles of most lefty groups that have to deal with it. It is often accused of taking money from corporations, accusations that Greenlining is a sellout. The problem is that over more than two decades, Greenlining has more vigor in attacking its corporate targets than any other non-profit.

The reason is simple. Funding vigor. The source of Greenlining’s funding is partly from legal victories, such as the recent case attacking PG&E’s excessive executive compensation. Greenlining also gets some foundation grants for specific projects and generally unrestricted funding grants from corporations. It also refuses to take funding from the government, tobacco, alcohol or gambling interests. In contrast, most nonprofit organizations are almost entirely funded by foundations. Foundations destroy activist vigor.

I was a foundation president and I have contempt for the servile relationship of many recipients within the grant community. Recipients of grant money are often docile pawns of so-called do-good foundation bullies. Honesty, strength, genuine character and vision are the first victims of a nonprofit organization dependent on foundation milk.

Greenlining is clear that it helps corporations break the bonds of habit and tradition that are barriers to meritocracy. You don’t do this by being nice and servile. The management of Greenlining, every year, hands donations back to corporations that think that Greenlining can be bought off just like nearly every other activist organization. Corporations usually learn that a donation in March is no protection from a public Greenlining rebuke in July. Greenlining is in the business of breaking habits and traditions that are barriers to meritocracy, it is breaking barriers to good businesses.

Greenlining would not be serving its clients if corporations could buy their way out of their commitments and go back to bad habits and traditions. Greenlining would be a toothless tiger, which it isn’t.

Trying to buy off Greenlining is like changing the subject in a difficult conversation. A serious dialog requires that the conversation stay focused. Greenlining makes sure that it does.

Greenlining is an activist minority based organization that I am proud to be associated with. Greenlining is a champion of meritocracy and it is significantly improving the way business is done. More meritocracy in business opens new opportunities for many deserving unappreciated minority workers in our community.