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BB&T Stands up for Rights
by David Kelley
BB&T, a major bank with branches through the Southeast, has taken a stand for private property and individual rights, in reaction to the Supreme Courts Kelo decision on eminent domain last June. The corporation announced that it will not lend to commercial developers that plan to build condominiums, shopping malls and other private projects on land taken from private citizens by government entities using eminent domain.
Chairman and Chief Executive Officer John Allison explained the policy as a matter of principle:
The idea that a citizens property can be taken by the government solely for private use is extremely misguided, in fact its just plain wrong. One of the most basic rights of every citizen is to keep what they own. As an institution dedicated to helping our clients achieve economic success and financial security, we wont help any entity or company that would undermine that mission and threaten the hard-earned American dream of property ownership.
W. Kendall Chalk, Senior Executive Vice President, told reporters that the issue arose when the bank recently rejected a loan request for a project relying on eminent domain, but that such cases are unusual; the new policy would have only an "insignificant" effect on BB&Ts loan business. Still, he said, BB&T is sympathetic to concerns about eminent domain expressed by some clients. The bank wants to show government officials its "opposition to the encroachment on private property rights." (Reuters)
The financial press speculated about the banks motives. Was it a practical judgment that a small loss of business would be outweighed by taking a popular stand (and avoiding the legal risks of eminent domain)? Or was it a matter of principles and values?
Those familiar with Ayn Rands philosophy of Objectivism will recognize this as a false dichotomyand so does BB&T. According to an online statement,
Since we build on the facts of reality and our ability to reason, we are capable of achieving both success and happiness.
Because we have developed our principles logically, based on reality, we will always act consistently with our principles. Regardless of the short-term benefits, acting inconsistently with our principles is to our long-term detriment. We do not, therefore, believe in compromising our principles in any situation.
Principles provide carefully thought-out concepts which will lead to our long-term success and happiness. Violating our principles will always lead to failure. BB&T is an organization of the highest integrity.
Allison has often spoken publicly about his admiration for Ayn Rand and the influence of Objectivism on the principles by which the business operates. The impact is clear in BB&Ts of statement of corporate philosophy, which is unusually thoughtful, integrated, and clearly explained.
We salute Allison and his colleagues. If the term corporate social responsibility can be given a legitimate, non-collectivism meaning, a principled public stand for individual rights is social responsibility of the highest order.
Please Visit my published Article Archive
BB&T Stands up for Rights
by David Kelley
BB&T, a major bank with branches through the Southeast, has taken a stand for private property and individual rights, in reaction to the Supreme Courts Kelo decision on eminent domain last June. The corporation announced that it will not lend to commercial developers that plan to build condominiums, shopping malls and other private projects on land taken from private citizens by government entities using eminent domain.
Chairman and Chief Executive Officer John Allison explained the policy as a matter of principle:
The idea that a citizens property can be taken by the government solely for private use is extremely misguided, in fact its just plain wrong. One of the most basic rights of every citizen is to keep what they own. As an institution dedicated to helping our clients achieve economic success and financial security, we wont help any entity or company that would undermine that mission and threaten the hard-earned American dream of property ownership.
W. Kendall Chalk, Senior Executive Vice President, told reporters that the issue arose when the bank recently rejected a loan request for a project relying on eminent domain, but that such cases are unusual; the new policy would have only an "insignificant" effect on BB&Ts loan business. Still, he said, BB&T is sympathetic to concerns about eminent domain expressed by some clients. The bank wants to show government officials its "opposition to the encroachment on private property rights." (Reuters)
The financial press speculated about the banks motives. Was it a practical judgment that a small loss of business would be outweighed by taking a popular stand (and avoiding the legal risks of eminent domain)? Or was it a matter of principles and values?
Those familiar with Ayn Rands philosophy of Objectivism will recognize this as a false dichotomyand so does BB&T. According to an online statement,
Since we build on the facts of reality and our ability to reason, we are capable of achieving both success and happiness.
Because we have developed our principles logically, based on reality, we will always act consistently with our principles. Regardless of the short-term benefits, acting inconsistently with our principles is to our long-term detriment. We do not, therefore, believe in compromising our principles in any situation.
Principles provide carefully thought-out concepts which will lead to our long-term success and happiness. Violating our principles will always lead to failure. BB&T is an organization of the highest integrity.
Allison has often spoken publicly about his admiration for Ayn Rand and the influence of Objectivism on the principles by which the business operates. The impact is clear in BB&Ts of statement of corporate philosophy, which is unusually thoughtful, integrated, and clearly explained.
We salute Allison and his colleagues. If the term corporate social responsibility can be given a legitimate, non-collectivism meaning, a principled public stand for individual rights is social responsibility of the highest order.
Please Visit my published Article Archive
"America's abundance was created not by public sacrifices to "the common good," but by the productive genius of free men who pursued their own personal interests and the making of their own private fortunes. They did not starve the people to pay for America's industrialization. They gave the people better jobs, higher wages adn cheaper goods with every new machine they invented, with every scientific discovery or technological advance -- and thus the whole country was moving forward and profiting, not suffering, every step of the way." (Ayn Rand)

