Evening star., 1935-12-05
SLOAN PUTS ISSUE
UP TO BUSINESS
Declares Industry No Longer
Can Avoid Social
Responsibility.
BY DAVID LAWRENCE.

Industry's responsibility to furnish
an enlightened leadership on current
economic problems has been in de-
mand ever since the depression began,
but 1t has nowhere been better ex-
pressed than in the speech delivered
last night in New York by Alfred p.
Sloan, jr.
Sloan's address strikes a note of
challenge to business itself and may,
therefore, be regarded as OF transcen-
dent importance at a time when pol
eminent in business affairs have
reached high point.
Briefly, Sloan says that unless busi-
ness wakes up and realizes its social
responsibility, Government will super
impose its own management.
Deplores Inaction.
"I am convinced" he said, "that in
dustry's responsibilities can no longer
be discharged, however efficient and
effective it may be, with the mere
physical production of goods and
services"
Sloan pointed out that business
must develop ways and means by
which to better correlate the indus
trial machine and its component parts
with the national economy as a whole,
in order to more effectively promote
human progress and security and ad-
vance civilization"
He deplored inaction as likely to
h,-;v
Sloan was speaking to the National
Association of Manufacturers, an or
ganiZation which has in its midst the
principal instrumentalities of produc-
ton and distribution in America. His
words were aimed at group which
has been criticized, rightly or wrongly,
in the past as opposed to social prog
resS.
Offered Constructive Thoughts.
Sloan did not deliver his usual tirade
| against the New Deal, but presented
| for consideration some constructive
| thoughts about what industry ought to
be doing to earn for itself better po-
sition with the public opinion of the
Nation. 1t is interesting to note that
Sloan offered the philosophy of re-
duction of real costs and selling prices
OF goods and services, something that
has been particularly characteristic of
the motor industry in this. one of the
most successful years in its history.
Apart from the need for lower
prices, Sloan struck out boldly for "a
more economic balance of national in
come through policies affecting wages,
hours, prices and profits" The entire
speech, of course, was plea for an
aggressive attack on the problem of
advancing the social and economic
status of the community as a whole. "
Much Discussion Predicted.
Undoubtedly the Sloan address will
attract good deal OF attention and
will be the basis of much discussion
Its full text is well worthy OF study oy
those who are interested in present.
day trends of long-range character
For while Sloan'S remarks will be re-
ceived sympathetically by the liberal
groups and broad -visioned business
men of the country. there are business
men who do not believe in any as
sumption by industry Of a RESPONSE
bility. Their theory is 'let things
alone and they will cure themselves"
Sloan's APPROACH involves. on the
other hand. a recognition of the fact
that the social order Is affected oy
serious disturbances of an economic
nature, and that business can assist
materially in the solution of national
problems. Nor does he accept the new
idea, held by other business men. that
because things are getting better. hence
some of the threats to our economic
system that have been coming from
! Government can be ignored.
It will be interesting to see what
steps industry does take to follow the
principles laid down in the Sloan
speech.
| (Copyright. 1889