David J. Danto
Travel thoughts in my
own, personal opinion
eMail: ddanto@IMCCA.org Follow Industry News: @NJDavidD on
Corporate Responsibility – Boiling Point - August 2025
There’s a dangerous heat building in
the United States. You can feel it in everyday
conversation, in online discourse, and increasingly, in headlines. What we’re witnessing isn’t just a momentary
flare-up. It’s a systemic, growing resentment
– a social pressure cooker nearing its boiling point. And at the center of it are corporations that
have shed their last layers of accountability in favor of stock price growth at
all costs, leaving employees and consumers to bear the brunt.
To be clear: pursuing profit is not inherently wrong. Capitalism at its best fuels innovation,
competition, and growth. But what we’re
seeing now isn’t just about profit – it’s about artificially inflating stock
prices to satisfy investors and enrich executives through compensation packages
tied to market value. These decisions
often come at the direct expense of the very people who built and sustain these
companies: their employees and customers.
And people are breaking.
In one of the most disturbing recent examples, a gunman
entered the office building housing the NFL’s headquarters in New York City and
opened fire, killing four people and wounding another. He left behind a note blaming the NFL for the
brain trauma he believed had ruined his life.
Though he never played in the league, he was a former high school
athlete who cited the long-term effects of repeated head injuries. He believed the NFL had known the risks of
chronic traumatic encephalopathy (CTE) and failed to act. His crime was premeditated and horrific – but
what’s perhaps even more unsettling is the number of people who expressed
sympathy for his situation.
Earlier this year, another man, after years of pleading with
a health insurance company to approve care for his sick relatives, shot and
killed that company’s CEO. In the days
that followed, social media filled with comments praising the shooter. Some people even called him a hero. Again, the act was murder – morally and
legally indefensible. But the volume of
support he received says something about the level of frustration many
Americans now feel toward institutions that were supposed to protect them but
instead appear to profit from their suffering.
None of this is to justify violence. Vigilantism is not justice. Killing is murder. I do not – and no one of good conscience
should – support or excuse these actions.
But it would be dangerously naïve to ignore what’s fueling them. People are losing faith that the system
works. They’re losing faith that anyone
in power is listening. And in that
vacuum, the idea of vengeance begins to feel righteous to some.
There was once a time when corporations understood the need
to be part of a healthy ecosystem. A
classic example pointing out the danger of short-term gain: a U.S. shirt
manufacturer employed local workers who earned enough to buy the very shirts
they made. Then, to increase margins,
the company outsourced manufacturing to another country. Costs dropped, profits soared – at least
briefly. The executive responsible
cashed out stock options and retired wealthy.
But the people who lost their jobs could no longer afford the products,
and eventually, the business collapsed.
This same pattern is now playing out in industries across the
board – including tech, where some of the most profitable companies in history
have laid off hundreds of thousands of workers in the name of “efficiency.”
These aren’t struggling firms. They are
immensely profitable – in some cases with billions in cash on hand. But they pursue stock growth, not long-term
stability. They reduce headcount to
improve earnings per share and boost share price, knowing full well that it
undermines their own long-term customer base.
The people they’re firing are the very ones who use their software,
hardware, subscriptions, and services.
The question isn’t whether the system will collapse under the weight of
this thinking – it’s when.
You don’t have to look to personal violence to see how
dangerously detached corporate leadership has become. Another harrowing example of profit-first
decision-making is right in our own travel industry backyard. Boeing, once considered a gold standard of
American engineering, suffered two devastating crashes of its 737 MAX aircraft
in 2018 and 2019, killing 346 people.
Investigations later revealed a pattern of cost-cutting and internal
pressure that prioritized delivery schedules and market share over safety. Critical systems like the MCAS software were
added without properly informing pilots, all to keep development costs
down. Executives sought to protect stock
performance and market position – and in doing so, allowed known fatal design
flaws to persist. The result wasn’t just
loss of life; it was the near-collapse of one of America’s most iconic
companies. The documentary Downfall:
The Case Against Boeing – which I’ve previously called a must-watch –
lays bare how systemic the failure was – not just of engineering, but of
ethics.
So how is this any different from what we’re seeing now with
big tech? Or with healthcare? Or finance?
We’ve created a system where executive success is measured by how well
they impress investors, not how well they serve society. The market rewards layoffs, punishes
long-term investment, and treats human capital as expendable. Meanwhile, entire communities are hollowed
out, and the public grows angrier with each betrayal.
In our current political climate, there’s little reason to
believe things will change. Regulatory
oversight is weak. Corporate
accountability is barely a talking point and certainly not a practice. But the pendulum always swings back. And when it does, one of the first things
that must be addressed is the lack of personal accountability at the top.
Executives who make decisions that harm workers and consumers
– even when those decisions are legal – must begin to share in the
consequences. If their actions result in
mass layoffs, unsafe products, or the erosion of basic trust, they should not
be allowed to walk away with millions.
Whether it’s clawbacks, parachute nullification, liability reform, or
stronger governance, we need mechanisms to ensure corporate leaders feel not
just the rewards of success, but also the pain of failure and harm. The first step, as I’ve suggested before, is
to force any profitable company that executes mass layoffs to cover all
ex-employee’s healthcare costs on their existing plan at 100% for three
years. If mass layoffs hurt profitable
employers as much as it hurt the employees being kicked to the curb then
companies would likely think twice before using it as a ploy to raise stock
prices. I’m sure there are other ideas
too, including forcing the resignation of the CEO anytime more than 5% of
workers are laid-off at a profitable company.
We must find a way to make corporate governance serve both society’s and
the company’s long-term interest – not just Wall Street’s.
The boiling point is here.
And if we don’t take the heat seriously, if we continue to dismiss the tragedies
as isolated incidents rather than signals of a broader collapse, then the next
wave of violence and unrest will surprise no one – least of all the people who
saw it coming. Because when the lid
finally blows, we won’t be able to say we weren’t warned.
This article was written by David Danto and contains solely his own, personal
opinions.
All image and links provided above as reference under
prevailing fair use statutes.
Copyright 2025 David Danto
++++++++
As always, feel free to write and comment, question or
disagree. Hearing from the traveling community is always a highlight for me.
Thanks!