US President Donald Trump is not the first politician to fulminate about the need for corporate loyalty to country above all else.
Mr Trump’s threats and imprecations against the American Midwest’s legendary motorcycle manufacturer Harley–Davidson for daring to send some of its production overseas, echoed the milder frustration about big business once expressed by his predecessor, Barack Obama.
In 2012, Mr Obama said US corporations that re-establish themselves abroad to avoid American tax liability are “economic deserters”.
Is there really such a thing as corporate patriotism? If so, is it a virtue and should it be depended upon?
These questions are worth pondering right now. On Friday, the US is due to activate new tariffs on Chinese goods worth $34 billion, and Beijing has threatened to inflict equal economic pain.
American and Chinese companies (and those from elsewhere too, because of the size of the two economies) will feel the effects of the ensuing trade war. Some will be embattled; others will profit. But most companies will simply fight just to stay in business rather than seeking to serve national interests.
That is right and proper. David Yosifon, a business law and ethics professor at Santa Clara University, once dryly noted: “The default rule under the most widely used corporate law in the United States, the Delaware General Corporation Law, is that corporations must be managed to serve the interests of the shareholders, and not any other stakeholder group.”
The reference to Delaware is instructive. It’s a relatively small US state but has more than half the country’s publicly traded corporations and more than 60 per cent of the Fortune 500. It is a magnet for companies, not because of bonds of blood or tradition, but because it provides conditions that make it easy and lucrative to be based there.
Delaware has made a virtue of being supremely tax-friendly to corporations. It allows people who aren’t US citizens or even residents to anonymously own and operate companies. In a sense, Delaware takes the emotion out of doing business, especially that which surrounds passports and political passions.
And yet politicians sometimes demand that business fly the flag rather than focusing on profit margins, bottom lines and balance sheets.
In the Harley-Davidson row, for instance, Mr Trump alternately blamed the company for its easy surrender and its mendacity. The company wanted to move production out of the US anyway, he said, and was using the tariff war with Europe as an excuse.
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He went on to threaten Harley-Davidson with crippling taxes and, finally, warned that his own voters, who loved the brand, would begin to take an active and market-altering dislike to the iconic motorcycles as a result of its perceived disloyalty.
In addition, Mr Trump remained unsympathetic to Harley’s explanation that it made business sense to manufacture bikes for Europe, in Europe.
The same argument is being heard from another prominent American motorcycle manufacturer, Minnesota-based Polaris. It has said it might start to manufacture some of its bikes in Poland rather than in Iowa, in order to sidestep European tariffs.
As a businessman, Mr Trump might have been expected to understand the logic of the balance sheet. As a former law professor, Mr Obama might have known that an American corporation’s tax residency status has little to do with patriotism and more to do with legal means of lowering tax bills.
Demands for corporate patriotism are at odds with recent mergers and acquisitions anyway – not least the creation of Europe's second largest steel-maker. Thyssenkrupp Tata Steel is German and Indian, will be based in the Netherlands and its 48,000 employees will be spread across 34 sites.
On Monday, the bosses of both companies said joining forces would mean more security for workers in an age of uncertainty thanks to Brexit, US tariffs and other imponderables.
That is exactly what the expanded company should be concerned about. Its identity not contained in the passports of those who own it, run it, or work for it, Thyssenkrupp Tata Steel will rightly hew to its own self-interest.
Of course, corporate governance decisions must be reasonable and ethical, but only, as Professor Yosifon says, to the extent they are “rationally related to advancing the shareholder interest”.
This is why American giant General Electric’s 2012 decision to invest $800 million in jobs, products and manufacturing in the US was seen, not as an act of patriotism or charity, but as a good way to cut high transportation costs.
If it swings the other way now, that too is just business.
Adam Smith, often regarded as the father of economics, said three things make us more prosperous: the freedom to pursue self-interest, the division of labour, and freedom of trade. Right around the time Smith wrote that, America was embarking on its grand nation-building project, which would promote free trade.
A reversal goes against the American project and the logic of doing business. It begins to look like state control of industry. And doesn't that sound like communism?
How has net migration to UK changed?
The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.
It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.
The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.
The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
MATCH INFO
Sheffield United 3
Fleck 19, Mousset 52, McBurnie 90
Manchester United 3
Williams 72, Greenwood 77, Rashford 79
Innotech Profile
Date started: 2013
Founder/CEO: Othman Al Mandhari
Based: Muscat, Oman
Sector: Additive manufacturing, 3D printing technologies
Size: 15 full-time employees
Stage: Seed stage and seeking Series A round of financing
Investors: Oman Technology Fund from 2017 to 2019, exited through an agreement with a new investor to secure new funding that it under negotiation right now.
More from Neighbourhood Watch:
Company profile
Name: Infinite8
Based: Dubai
Launch year: 2017
Number of employees: 90
Sector: Online gaming industry
Funding: $1.2m from a UAE angel investor
Friday's schedule at the Etihad Airways Abu Dhabi Grand Prix
GP3 qualifying, 10:15am
Formula 2, practice 11:30am
Formula 1, first practice, 1pm
GP3 qualifying session, 3.10pm
Formula 1 second practice, 5pm
Formula 2 qualifying, 7pm
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
Company Profile
Name: JustClean
Based: Kuwait with offices in other GCC countries
Launch year: 2016
Number of employees: 130
Sector: online laundry service
Funding: $12.9m from Kuwait-based Faith Capital Holding
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
UAE currency: the story behind the money in your pockets
The specs: 2018 Jeep Compass
Price, base: Dh100,000 (estimate)
Engine: 2.4L four-cylinder
Transmission: Nine-speed automatic
Power: 184bhp at 6,400rpm
Torque: 237Nm at 3,900rpm
Fuel economy, combined: 9.4L / 100km
The winners
Fiction
- ‘Amreekiya’ by Lena Mahmoud
- ‘As Good As True’ by Cheryl Reid
The Evelyn Shakir Non-Fiction Award
- ‘Syrian and Lebanese Patricios in Sao Paulo’ by Oswaldo Truzzi; translated by Ramon J Stern
- ‘The Sound of Listening’ by Philip Metres
The George Ellenbogen Poetry Award
- ‘Footnotes in the Order of Disappearance’ by Fady Joudah
Children/Young Adult
- ‘I’ve Loved You Since Forever’ by Hoda Kotb
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
- September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
- October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
- October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
- November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
- December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
- February 2, 2018 Bodytree will host its 4th annual yoga market.
Roll of honour
Who has won what so far in the West Asia Premiership season?
Western Clubs Champions League - Winners: Abu Dhabi Harlequins; Runners up: Bahrain
Dubai Rugby Sevens - Winners: Dubai Exiles; Runners up: Jebel Ali Dragons
West Asia Premiership - Winners: Jebel Ali Dragons; Runners up: Abu Dhabi Harlequins
UAE Premiership Cup - Winners: Abu Dhabi Harlequins; Runners up: Dubai Exiles
West Asia Cup - Winners: Bahrain; Runners up: Dubai Exiles
West Asia Trophy - Winners: Dubai Hurricanes; Runners up: DSC Eagles
Final West Asia Premiership standings - 1. Jebel Ali Dragons; 2. Abu Dhabi Harlequins; 3. Bahrain; 4. Dubai Exiles; 5. Dubai Hurricanes; 6. DSC Eagles; 7. Abu Dhabi Saracens
Fixture (UAE Premiership final) - Friday, April 13, Al Ain – Dubai Exiles v Abu Dhabi Harlequins
The specs: 2017 Maserati Quattroporte
Price, base / as tested Dh389,000 / Dh559,000
Engine 3.0L twin-turbo V8
Transmission Eight-speed automatic
Power 530hp @ 6,800rpm
Torque 650Nm @ 2,000 rpm
Fuel economy, combined 10.7L / 100km
Syria squad
Goalkeepers: Ibrahim Alma, Mahmoud Al Youssef, Ahmad Madania.
Defenders: Ahmad Al Salih, Moayad Ajan, Jehad Al Baour, Omar Midani, Amro Jenyat, Hussein Jwayed, Nadim Sabagh, Abdul Malek Anezan.
Midfielders: Mahmoud Al Mawas, Mohammed Osman, Osama Omari, Tamer Haj Mohamad, Ahmad Ashkar, Youssef Kalfa, Zaher Midani, Khaled Al Mobayed, Fahd Youssef.
Forwards: Omar Khribin, Omar Al Somah, Mardik Mardikian.
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
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