Hormel corporation. Why did the business press call Hormel a “red capitalist” in the 1930s? Wouid you call CostCo a “red capitalist?”
The Mother Jones article explains the “red capitalist” charge. Note that Hormel has shifted at least twice in its approach to corporate social responsibility.
Capitalists are persons or businessmen who engage in massive investments and involve in production of goods and services with an aim of generating profits with greater margin along with capturing market share to optimal level within a free market economy. It is hard to see capitalists who pay attention towards societal welfare and green marketing. But now, as the emerging trends occurring, lots of capitalists are trying their level best to achieve the goal of social welfare along with profit generation. In this case study, Hormel, a capitalist is rightly engaged itself in socio-welfare activities and can be categorized as Red Capitalist. This capitalist has some unique features which enable him to have a distinctive position in market as compare to other capitalists. Other capitalists are just focusing upon profit generation not upon social welfare and that is why, this capitalist is rightly given the status of Red Capitalist.
The business community and press rightly declared him as red capitalist in 1930 due to his style of leadership. He provided first time the annual wages plan, progressive and employee oriented pension plans, labor wages per hour systems and so on. The piece work and hourly rates were the distinctive features which were used by this Capitalist. He was in arguing that the productivity and output of any firm or business can be generated via paying more to employees and giving them proper working environment. The annual wages plan, giving employees an option of 52 weeks prior termination notification time and benevolent leadership are the emerging concepts which are introduced by Hormel which given him the status of Red Capitalist. On the other side, the offerings and benefits of CostCo can also never be negated. This capitalist may also categorized as Red Capitalist.
I have found some good sources upon the topic of this discussion when I made research upon the topic which can be found from following useful resources:
O’connor, James. “Capitalism, nature, socialism a theoretical introduction∗.” (1988): 11-38.
Escobar, Arturo. “Construction nature: Elements for a post-structuralist political ecology.” Futures 28.4 (1996): 325-343.