Kaysen Sees Corporation Stress On Responsibilities to Society

A large-corporation policy of "good citizenship and good behavior" has replaced the money-grabbing "hard business" pattern of the 1930's, Carl Kaysen, associate professor of Economics, stated last night.

Speaking before the Graduate Economics Club at Conant Hall, Kaysen asserted that management's goal today is to serve as "arbitrator among a variety of groups with claims on the corporation."

He noted the uniqueness of the new business ethic by contrasting it with the policy of large trusts in the early New Deal era of placing "property rights over human rights."

Kaysen stated that the "soulful" corporation represented "the industrial revolution applied to capitalism." He drew an analogy between the turn from a "learned handicraft to a rationalized technique" in the industrial revolution and the growing emphasis on the "professionalization of management function" replacing "intuitive management" in the modern corporation.

The economist named Dupont, General Motors, and General Electric as examples of the modern "soulful" corporation. Among the attributes that characterize all such companies, Kaysen noted the size and dominance of the firm, capacity for large-scale growth, and the relative absence of ownership interest.

He suggested specialized, professional management with the chief stress on rationality and mechanical computation to replace vague, intuitive control by owners.

Kaysen also pointed out that the corporations which have achieved the "soulful" status should serve as an ideal to others.