Editorial: What happens to corporations when money and conscience intersect

["Taiwan Church News" <enews@pctpress.org>]

3128 Edition

February 6-12, 2012

Editorial

Editorial: What happens to corporations when money and conscience intersect

Translated by Lydia Ma

Berndes Cookware, a well-known German non-stick cookware manufacturer founded 
in 1921, recently made news when its managing director, Marcus Linnepe, 
announced that Berndes would soon be closing its factory in China and bringing 
production back to Germany. Linnepe explained that a “Made in Germany” seal of 
quality was incomparable and irreproducible and cited it as a chief reason for 
the move. Berndes employees whose livelihoods were compromised when the 
company’s production moved to China welcomed such a philosophy and decision.

Linnepe added that though Berndes will henceforth stop manufacturing its 
cookware in China, it has not pulled out from the Chinese market. Cookware made 
in Germany will continue to be sold in China and will likely increase the 
company’s profits in China because of Berndes impeccable reputation. According 
to reports, a Berndes cookware with a “Made in Germany” seal can sell twice the 
price of the same cookware with a “Made in China” seal.

Just as Germans are appreciating the value of a product that comes with a “Made 
in Germany” tag, a well-known company in Taiwan that previously marketed itself 
as a “Made In Taiwan” (MIT) brand made headlines by moving some of its 
production lines abroad. Lativ, an online clothing company that reaped a 
whopping NT$4 million in profits and handed out up to 40 months’ worth of 
bonuses to employees last year, also removed information on production location 
from its website. When Lativ was pressed by consumers reinstate this 
information, Lativ not only declined such a request but also “clarified” that 
its vision of being “100% MIT” was a “pure misunderstanding.”

Alas, incidents such as this one are not unheard of in Taiwan and Lativ is 
merely the latest example of a long list of entrepreneurs who brag about having 
MIT products but soon go back on their word. The decisions made by the managers 
of Berndes and Lativ are contrasting examples of the differences between 
Chinese culture and German culture. Whereas German entrepreneurs prize truth 
and integrity, China-leaning Taiwanese entrepreneurs have grown accustomed to 
the Chinese practice of vagueness and mediocrity in their pursuit of greater 
profits.

Oftentimes, businesses that practice ethical conduct will make profits, but 
businesses that make profits may not always practice ethical conduct. From a 
religious standpoint, money can be either a tool to further the common good of 
society or a tool for selfish gain. It is our conscience that decides whether 
money will be used for good or for evil.

Taiwan Church Press recently co-sponsored a series of symposiums across Taiwan 
on the topic of “Money and Conscience”, featuring German Benedictine padre and 
author Anselm Gruen and sportswear brand PUMA (now PPR) CEO Jochen Zeitz. Gruen 
used the story of Jesus healing a woman with Kyphosis, and restoring her human 
dignity and God-given image in the process, to illustrate how corporations 
ought to treat their employees. Zeitzechoed this sentiment and said his company 
had donated half of its after-tax profits to environmental causes to reflect 
PUMA’s core values. These contrasting stories are reminders that personal 
values exert a great influence on whether corporations and individuals act 
ethically.

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