Business
Commentary: The quality that defines the squalor of our business and government leadership — absence of Character
The best lesson I learned during my formative years in journalism came from the editor at my first daily newspaper job, Doug Turner of the late Buffalo Courier-Express.
I had told him that the councilmen at the suburban town I was covering were trying to bully me out of writing a critical story. Turner, who had spent a career covering local- and state-level politicians, replied, “Bully them back. They’ll fold. These guys have no character.”
That moment came back to me a couple of weeks ago, thanks to an online post by Josh Marshall, founder and proprietor of the estimable blog talkingpointsmemo.com. Writing a few days after massive layoffs at the Washington Post, Marshall observed of the paper’s publisher, Will Lewis, and its owner, Jeff Bezos, that their failure “to even show up, literally or figuratively, on a day of devastating cuts epitomizes the profound lack of character and accountability that is so commonplace today within the American elite.”
Our efforts at diversity, equity and inclusion remind and reinforce with everyone at our Company the importance of creating opportunities for all.
— Costco pushes back against attacks on DEI
There was that word again: “Character.”
Marshall put his finger on the flaw that exists among our business and government leaders. It’s the absence of character.
The quality can be hard to define precisely, but we know it when we see it, to paraphrase Supreme Court Justice Potter Stewart’s personal, subjective test for obscenity in a famous 1964 case. We can also know it by its absence.
Philosophers, ministers, judges, novelists and historians have all taken a crack at defining “character.” Often they search for it in some variety of moral truth (another quality that can be hard to define).
It can encompass steadfastness in the face of adversity, selflessness, self-sacrifice, honesty and integrity in one’s dealings with others. It doesn’t demand to be displayed in public. On the contrary, sometimes it unfolds out of the public eye; self-abnegation can be a reliable marker of character.
Literary masters have grappled with defining character. Tolstoy’s great novels, “War and Peace” and “Anna Karenina,” are all about the journeys of his major figures from self-doubt and selfishness to a higher moral plane, not always successfully — he himself was so doubtful about whether he had accurately traced their trajectories that toward the end of his life he disavowed those great works as inadequate.
Faulkner found it in the patient, steadfast Dilsey of “The Sound and the Fury,” and in his greatest novel, “Absalom, Absalom!” he showed how its absence led inexorably to the ruin of Thomas Sutpen.
Character emerges in adversity. A most recent example comes from Ilia Malinin, the American figure skater whose hopes for an individual gold medal in the Olympics, which had been regarded as a preordained inevitability evaporated in a mistake-laden routine. Coming off the ice, Malinin forthrightly congratulated the winner, Mikhail Shaidorov of Kazakhstan, as if to communicate that Shaidorov won the prize from his own efforts, not from Malinin’s failure. The encounter signaled that Malinin will remain a major figure in the sport for years to come.
For us today, the term “character” allows us to avoid unprofitable debate over how to define the current administration. Is it “racist”? “Corrupt”? “Mendacious?” Applying those judgments invites partisan quibbling, because accusations of racism, corruption and lying can be colored by the eye of the beholder. But to say the administration can be defined as a lack of character—the term subsumes all those other judgments, and is much harder to question.
As Josh Marshall observed, abundant examples of the singular lack of character in our national leaders is vividly on display. Let’s take a look.
What’s a better way to describe Atty. Gen. Pam Bondi’s appearance before a House committee last week, during which she tried to evade questions about her failure to release documents related to Jeffrey Epstein’s dealings by finger-pointing at her questioners, keeping her back turned to the Epstein victims in the room behind her and citing the Dow Jones industrial average’s spike above 50,000 as a counterargument to her own inadequacies, as a singular lack of character?
When the preening Defense Secretary Pete Hegseth launched a campaign to demote the retired Navy captain and current Arizona Sen. Mark Kelly, a combat veteran and former astronaut, because of Kelly’s reminder to active servicemen that they need not follow illegal orders (a statement Hegseth himself has made) he was displaying singular lack of character — and underscoring Kelly’s own abundance of character.
The people of Minneapolis have displayed remarkable communal character in their relentless and peaceful battle against the government’s incursion into their private life. Who has displayed a lack of character? Homeland Security Secretary Kristi Noem, her henchman Greg Bovino, and other defenders of this openly counterfeit campaign against illegal immigrants in their city.
Congress is a hive of low-character performance, full of individuals who have supplanted their responsibilities to the Constitution and the public interest with flagrant careerism.
Among those at the top of the list is Sen. Bill Cassidy (R-La.), a physician who cast the deciding vote to confirm Robert F. Kennedy Jr. as secretary of Health and Human Services, despite Kennedy’s history of anti-vaccination activity. Cassidy has never adequately responded to my question about his support for Kennedy.
Facing a tough primary challenge, Cassidy showed recently that his lack of character extends beyond matters of healthcare regulation when he praised President Trump for taking down an overtly racist social media post attacking the Obamas, writing on X, bizarrely, that Trump has “made significant inroads with his outreach in the African American community…. His post sent the wrong message despite how it may have been originally intended.”
In business, who has shown a lack of character? There’s Apple CEO Tim Cook, who gifted Trump with a crystal plaque on a gold base as part of his effort to secure an exemption for Apple from Trump’s tariffs.
Count the corporate executives who have shown their lack of character by bowing to right-wing pressure to abandon their commitments to diversity, equality and inclusion — you know, “DEI.” A notable exception: Costco, which has maintained its diversity programs in the face of partisan backlash, and improved its bottom line as a result. That’s a reminder that one can do well while doing good, a lesson in the virtues of character.
“Our efforts at diversity, equity and inclusion remind and reinforce with everyone at our Company the importance of creating opportunities for all,” Costco said in its 2024 proxy statement, pushing back against a proposed shareholder resolution insinuating that Costco’s DEI program “holds litigation, reputational and financial risks to the Company, and therefore financial risks to shareholders.” (The resolution failed at Costco’s annual meeting last year.)
Then there are the directors and executives of pharmaceutical companies who price their products for maximal profits without caring much about the impact of unaffordability on the patients whose lives depend on those products. Back in the 2010s, for instance, executives at Gilead Sciences pondered how much to charge for Sovaldi, its miracle cure for hepatitis C.
As I reported at the time, they concluded Gilead could make a profit by charging $55,000 per 12-week treatment. But they decided to charge $84,000, which would deliver higher profits from fewer patients.
They refused to offer anything but minimal discounts to big insurers and Medicaid programs, even though they acknowledged that thousands of patients might have to go without the treatments. “Let’s not fold to advocacy pressure … whatever the headlines,” one top executive counseled his colleagues.
As a historical counterweight, consider Jonas Salk, the inventor of the polio vaccine, who refused to patent it. Asked by Edward R. Murrow in 1955 who owned the rights to the polio vaccine, he replied, “The people, I would say. … There is no patent. Could you patent the sun?”
Recent history provides us with numerous cases of individuals who have shown their character at the cost of their physical and financial well-being. Among the heroes of the civil rights movement in the 1960s were many who lost their lives in the effort, such as Martin Luther King Jr. and Medgar Evers, or suffered severe physical injury, such as the late John Lewis.
I always admired former California Gov. Jerry Brown for his devotion to public service, a true avatar of character. In 2010, when he was running for his third gubernatorial term, his Republican challenger, the business magnate Meg Whitman, placed the firing of thousands of public employees to cut wasteful spending at the forefront of her platform.
Brown could have joined the chorus of critics of government “waste, fraud and abuse” — a perennially popular take for politicians — but he chose the opposite path. These people had devoted their lives to public service, Brown pointed out during a debate with Whitman. They had committed to teaching our children, cleaning up our air and water, holding dishonest businesses to account. That was an expression of character.
Brown, indeed, displayed character throughout his long political career: Fifteen years after serving two terms as governor, in 1998, he ran for mayor of Oakland, surely one of the most challenging and thankless jobs in California politics — and won. He never, ever apologized for being a “politician,” but saw politics as a noble calling.
The search for character among our politicians and business leaders could easily turn into a parlor game — draw a line down a piece of paper, with “Has Character” on one side and “No character” on the other, and compile two antipodean lists. But there’s more at stake than entertaining ourselves.
It was not always so. The 56 signers of the Declaration of Independence knew their expression of character placed them at mortal risk. That’s why the document ends with their mutual pledge of “our Lives, our Fortunes and our sacred Honor.” If we are to preserve our republic and our economy, restoring men and women of character to our leadership is an indispensable goal.
Business
MrBeast company sued over claims of sexual harassment, firing a new mom
A former female staffer who worked for Beast Industries, the media venture behind the popular YouTube channel MrBeast, is suing the company, alleging she was sexually harassed and fired shortly after she returned from maternity leave.
The employee, Lorrayne Mavromatis, a Brazilian-born social media professional, alleges in a lawsuit she was subjected to sexual harassment by the company’s management and demoted after she complained about her treatment. She said she was urged to join a conference call while in labor and expected to work during her maternity leave in violation of the Family and Medical Leave Act, according to the federal complaint filed Wednesday in the U.S. District Court for the Eastern District of North Carolina.
“This clout-chasing complaint is built on deliberate misrepresentations and categorically false statements, and we have the receipts to prove it. There is extensive evidence — including Slack and WhatsApp messages, company documents, and witness testimony — that unequivocally refutes her claims. We will not submit to opportunistic lawyers looking to manufacture a payday from us,” Gaude Paez, a Beast Industries spokesperson, said in a statement.
Jimmy Donaldson, 27, began MrBeast as a teen gaming channel that soon exploded into a media company worth an estimated $5 billion, with 500 employees and 450 million subscribers who watch its games, stunts and giveaways.
Mavromatis, who was hired in 2022 as its head of Instagram, described a pervasive climate of discrimination and harassment, according to the lawsuit.
In her complaint, she alleges the company’s former CEO James Warren made her meet him at his home for one-on-one meetings while he commented on her looks and dismissed her complaints about a male client’s unwanted advances, telling her “she should be honored that the client was hitting on her.”
When Mavromatis asked Warren why MrBeast, Donaldson, would not work with her, she was told that “she is a beautiful woman and her appearance had a certain sexual effect on Jimmy,” and, “Let’s just say that when you’re around and he goes to the restroom, he’s not actually using the restroom.”
Paez refuted the claim.
“That’s ridiculous. This is an allegation fabricated for the sole purpose of sparking headlines,” Paez said.
Mavromatis said she endured a slate of other indignities such as being told by Donaldson that she “would only participate in her video shoot if she brought him a beer.”
“In this male-centric workplace, Plaintiff, one of the few women in a high-level role, was excluded from otherwise all-male meetings, demeaned in front of colleagues, harassed, and suffered from males be given preferential treatment in employment decisions,” states the complaint.
When Mavromatis raised a question during a staff meeting with her team, she said a male colleague told her to “shut up” or “stop talking.”
At MrBeast headquarters in Greenville, N.C., she said male executives mocked female contestants participating in BeastGames, “who complained they did not have access to feminine hygiene products and clean underwear while participating in the show.”
In November 2023, Mavromatis formally complained about “the sexually inappropriate encounters and harassment, and demeaning and hostile work environment she and other female employees had been living and experiencing working at MrBeast,” to the company’s then head of human resources, Sue Parisher, who is also Donaldson’s mother, according to the suit.
In her complaint, Mavromatis said Beast Industries did not have a method or process for employees to report such issues either anonymously or to a third party, rather employees were expected to follow the company’s handbook, “How to Succeed In MrBeast Production.”
In it, employees were instructed that, “It’s okay for the boys to be childish,” “if talent wants to draw a dick on the white board in the video or do something stupid, let them” and “No does not mean no,” according to the complaint.
Mavromatis alleges that she was demoted and then fired.
Paez said that Mavromatis’s role was eliminated as part of a reorganization of an underperforming group within Beast Industries and that she was made aware of this.
Business
Heidi O’Neill, Formerly of Nike, Will Be New Lululemon’s New CEO
Lululemon, the yoga pants and athletic clothing company, has hired a former executive from a rival, Nike, as its new chief executive.
Heidi O’Neill, who spent more than 25 years at Nike, will take the reins and join Lululemon’s board of directors on Sept. 8, the company announced on Wednesday.
The leadership change is happening during a tumultuous time for Lululemon, which had grown to $11 billion in revenue by persuading shoppers to ditch their jeans and slacks for stretchy leggings. But lately, sales have declined in North America amid intense competition and shifting fashion trends, with consumers favoring looser styles rather than the form-fitting silhouettes for which Lululemon is best known.
“As I step into the C.E.O. role in September, my job will be to build on that foundation — to accelerate product breakthroughs, deepen the brand’s cultural relevance, and unlock growth in markets around the world,” Ms. O’Neill, 61, said in a statement.
Lululemon, based in Vancouver, British Columbia, has also been entangled in a corporate power struggle over the company’s future. Its billionaire founder, Chip Wilson, has feuded with the board, nominated independent directors and criticized executives.
Lululemon’s previous chief executive, Calvin McDonald, stepped down at the end of January as pressure mounted from Mr. Wilson and some investors. One activist investor, Elliott Investment Management, had pushed its own chief executive candidate, who was not selected.
The interim co-chiefs, Meghan Frank and André Maestrini, will lead the company until Ms. O’Neill’s arrival, when they are expected to return to other senior roles. The pair had outlined a plan to revive sales at Lululemon, promising to invest in stores, save more money and speed up product development.
“We start the year with a real plan, with real strategies,” Mr. Maestrini said in an interview this year. “We make sure decisions are made fast.”
Lululemon said last month that it would add Chip Bergh, the former chief executive of Levi Strauss, to its board to replace David Mussafer, the chairman of the private equity firm Advent International, whom Mr. Wilson had sought to remove.
Ms. O’Neill climbed the organizational chart at Nike for decades, working across divisions including consumer sports, product innovation and brand marketing, and was most recently its president of consumer, product and brand. She left Nike last year amid a shake-up of senior management that led to the elimination of her role.
Analysts said Ms. O’Neill would be expected to find ways to energize Lululemon’s business and reset the company’s culture in order to improve performance.
“O’Neill is her own person who will come with an agenda of change,” said Neil Saunders, the managing director of GlobalData, a data analytics and consulting company. “The task ahead is a significant one, but it can be undertaken from a position of relative stability.”
Business
Angry Altadena residents ask officials to halt Edison’s undergrounding work
Eaton wildfire survivors’ anger about Southern California Edison’s burying of electric wires in Altadena boiled over Tuesday with residents calling on government officials to temporarily halt the work.
In a letter to the Los Angeles County Board of Supervisors, more than 120 Altadena residents and the town’s council wrote that they had witnessed “manifest failures” by Edison in recent months as it has been tearing up streets and digging trenches to bury the wires.
The residents cited the unexpected financial cost of the work to homeowners and possible harm to the town’s remaining trees. They also pointed out how the work will leave telecommunication wires above ground on poles.
“The current lack of coordination is compounding the stress of a community still reeling from the Eaton Fire, and risks causing further irreparable harm,” the residents wrote.
The council voted unanimously Tuesday night to send the letter.
Scott Johnson, an Edison spokesman, said Wednesday that the company has been working to address the concerns, including by looking for other sources of funds to help pay for the homeowners’ costs.
“We recognize this community has already faced a number of challenges,” he said.
Johnson said the company will allow homeowners to keep existing overhead lines connecting their homes to the grid if they are worried about the cost.
Edison’s crews, Johnson said, have also been trained to use equipment that avoids roots and preserves the health of trees.
The utility has said that burying the wires as the town rebuilds thousands of homes destroyed in the fire will make the electrical grid safer and more reliable.
But anger has grown as work crews have shown up unexpectedly and residents learned they’re on the hook to pay tens of thousands of dollars to connect their homes to the buried lines.
Residents have also found the crews digging under the town’s oak and pine trees that survived last year’s fire. Arborists say the trenches could destroy the roots of some of the last remaining trees and kill them.
Amy Bodek, the county’s regional planning director, recently warned Edison that a government ordinance protects oak trees and that “utility trenching is not exempt from these requirements.”
Residents have also pointed out that in much of Altadena, the telecom companies, including Spectrum and AT&T, have not agreed to bury their wires in Edison’s trenches. That means the telecom wires will remain on poles above ground, which residents say is visually unappealing.
“While our community supports the long-term benefits of moving utilities underground, the current execution by SCE is placing undue financial and planning burdens on homeowners, causing irreparable harm to our heritage tree canopy, and proceeding without adequate local oversight,” the residents wrote.
They want the project halted until the problems are addressed.
Edison announced last year that it would spend as much as $925 million to underground and rebuild its grid in Altadena and Malibu, where the Palisades fire caused devastation.
The work — which costs an estimated $4 million per mile — will earn the utility millions of dollars in profits as its electric customers pay for it over the next decades.
Pedro Pizarro, chief executive of Edison International, told Gov. Gavin Newsom last year that state utility rules would require Altadena and Malibu homeowners to pay to underground the electric wire from their property line to the panel on their house. Pizarro estimated it would cost $8,000 to $10,000 for each home.
But some residents, who need to dig long trenches, say it will cost them much more.
“We are rebuilding and with the insurance shortfall, our finances are stretched already,” Marilyn Chong, an Altadena resident, wrote in a comment attached to the letter. “Incurring the additional burden of financing SCE’s infrastructure is not something we can or should have to do.”
Other fire survivors complained of Edison’s lack of planning and coordination with residents.
“I’ve started rebuilding, and apparently there won’t be underground power lines for me to connect with in time when my house will be done,” wrote Gail Murphy. “So apparently I’m supposed to be using a generator, and for how long!?”
Johnson said the company has set up a phone line for people with concerns or questions. That line — 1-800-250-7339 — is answered Monday through Saturday, he said.
Residents can also go to Edison’s office in Altadena at 2680 Fair Oaks Avenue. The office is open Monday to Friday from 8 to 4:30.
It’s unclear if the Eaton fire would have been less disastrous if Altadena’s neighborhood power lines had been buried.
The blaze ignited under Edison’s towering transmission lines that run through Eaton Canyon. Those lines carry bulk power through the company’s territory. In Altadena, Edison is burying the smaller distribution lines, which carry power to homes.
The government investigation into the cause of the fire has not yet been released. Pizarro has said that a leading theory is that a century-old transmission line, which had not carried power for 50 years, somehow re-energized to spark the blaze.
The fire killed at least 19 people and destroyed more than 9,400 homes and other structures.
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