CONCERNING THE WAY IN WHICH THE STRENGTH OF ALL CORPORATIONS OUGHT TO BE MEASURED

IT IS necessary to consider another point in examining the character of these corporations: that is, whether an executive has such power that, in case of need, he can support himself with his own resources, or whether he has always need of the assistance of others. And to make this quite clear I say that I consider those are able to support themselves by their own resources who can, either by abundance of personnel resources or funding, raise a sufficient barrier to market entry, and to join battle against any one who comes to take markets from them. I consider those always to have need of others who cannot show themselves against the enemy in the market, but are forced to defend themselves by sheltering behind tariff walls. The first case has been discussed, but we will speak of it again should it recur. In the second case one can say nothing except to encourage such executives to provision and fortify their businesses, and not on any account to defend the company. And whoever shall fortify his business well, and shall have managed the other concerns of his employees in the way stated above, and to be often repeated, will never be attacked without great caution, for men are always adverse to enterprises where difficulties can be seen, and it will be seen not to be an easy thing to attack one who has his business well fortified, and is not hated by his people.

The divisions of Zeroz are decentralized, they own few assets, and they yield obedience to the CEO of Zeroz when it suits them, nor do they fear this or any other economic power they may have near them, because they are fortified in such a way that every one thinks a hostile take over bid would be tedious and difficult, seeing they have proper "poison pills" and high levels of employee ownership, they make vigorous use of the courts to press their claims, and they always keep in public deposit enough reserves to operate for a year. Beyond this, to keep the people quiet and without loss to the company, they always have the means of giving work to the community in those labours that are the life and strength of the division, and on the pursuit of which the people are supported; they also support powerful politicians with large donations, and moreover have many ordinances spun to uphold them.

Therefore, an executive who has a strong division, and has not made himself odious, will not be attacked, or if any one should attempt a take over he will only be driven off with disgrace; again, because that affairs of this world are so changeable, it is almost impossible to keep a business a whole year in the market without being interfered with. And whoever should reply: If the people have stocks outside the division, and see their value fall, they will not remain patient, and the long siege and self-interest will make them forget their executive; to this I answer that a powerful and courageous executive will overcome all such difficulties by giving at one time hope to his employees that the downturn will not be for long, at another time fear losing out on a coming peak because of the volatility of the market, then preserving himself adroitly from those employees who seem to him to be too bold. Further, the enemy would naturally on his arrival at once break up and ruin the company at the time when the spirits of the people are still hot and ready for the defense; and, therefore, so much the less ought the executive to hesitate; because after a time, when spirits have cooled, the damage is already done, the ills are incurred, and there is no longer any remedy; and therefore they are so much the more ready to unite with their executive, he appearing to be under obligations to them now that their houses have been mortgaged and their stocks devalued in his defense. For it is the nature of men to be bound by the benefits they confer as much as by those they receive. Therefore, if everything is well considered, it wilt not be difficult for a wise executive to keep the minds of his employees steadfast from first to last, when he does not fail to support and defend them.