From Wal-Mart CEO to Owner of the KC Royals

David Glass stood before exultant fans in Kauffman Stadium Wednesday evening. As television cameras recorded the scene, the 79-year-old owner and chief executive of the Kansas City Royals thanked the faithful for their support of his team that, by virtue of their four game sweep of the Baltimore Orioles, is headed to the World Series for the first time since 1985. Indeed, this is the first time in 28 years that the Royals had qualified for any post-season activity.

Glass has owned the Royals since he shelled out $96 million in 2000. For the seven years prior to his ownership he was the CEO of the baseball franchise founded by Ewing Kauffman, who died in 1993. During Glass’ tenure as head Royal, Kansas City was a model of ineptitude, setting records for annual futility. Fans were infuriated, believing the team was more concerned with fielding the lowest paid roster in the sport than with being competitive. This year’s payroll started at $92 million, 19th out of the 30 major league teams.

Paying low wages was something Glass was all too familiar with. You see, from 1988 to 2000, Glass was president and CEO of Wal-Mart. And that’s where my connection to David Glass lies. As head of Wal-Mart, succeeding founder Sam Walton, Glass oversaw its growth from $20.6 billion to $191.3 billion, from 1,381 domestic stores to 4,190 stores in countries as diverse as Great Britain, Mexico, Argentina, Brazil, China and Germany. 

He has a wry sense of humor. He could be self-effacing. He would tell the story of the time Walton tried to recruit him in 1962 when he was invited to attend the opening of the second Wal-Mart, in Harrison, Ark. At the time Glass was a financial officer with a small drug store chain in Springfield, MO. As related by Vance H. Trimble in his biography of Walton, Glass said, 

“It was the worst retail store I had ever seen. Sam had brought a couple of trucks or watermelons in and stacked them on the sidewalk. He had a donkey ride out in the parking lot. It was 115 degrees, and the watermelons began to pop, and the donkey began to do what donkeys do, and it all mixed together and ran all over the parking lot. And when you went inside the store, the mess just continued, having been tracked in all over the floor. 

“He was a nice fellow, but I wrote him off. It was just terrible.”

Fourteen years later Glass joined Wal-Mart.

I met Glass about three years later. He was not the most approachable of Wal-Mart executives. Behind his resonant baritone voice I always suspected he did not like sharing anything with the press. And this was before his signature moment with the media. That occurred in December 1992 on NBC Dateline. Glass was confronted with allegations Wal-Mart suppliers in Bangladesh employed underage child laborers, that the company’s vaunted Made in America program was a sham.

Glass, at the time, had bushy, dark eyebrows that slanted up his forehead. With the Dateline camera angled from below his seat, he was the picture of Mephistopheles. He was the picture of evil incarnate.

Glass stormed out of the interview. Though he returned to face the Dateline cameras weeks later, the damage to his and Wal-Mart’s reputation was done.

Over the last five years the Royals have been more competitive. Their general manager, Dayton Moore, has made many shrewd roster moves. As he stood on the infield stage under a black League Champions hat, David Glass could only hope fans would be more appreciative of his management of their beloved, long-suffering Royals. It would help if they won the World Series. 

Lox vs. Locks and Tuesday Movies Go Dark

Your faithful correspondent and his wife returned home shortly after 3 am today from a week-long trip to California, first to visit my sister Lee and her husband David in Los Angeles and then to attend a wedding in Laguna Beach where the weather couldn’t have been better—the whole weekend a balmy 71 degrees with a slight ocean breeze. That compares quite favorably to the mid 80s and high humidity in White Plains today.

My only complaint about the trip was I never got an opportunity to watch any episode of The Daily Show with Jon Stewart or The Colbert Report. Here’s an example of why I miss those two shows:

When you’re a Jewish comedian as Stewart is, you run the risk of telling an “inside” joke your gentile guest has no idea you’re making. During his interview with actress Ellen Page Monday night, Stewart couldn’t contain his positive feelings about Canada, especially Halifax, Nova Scotia, Page’s home town. He concluded his gushing by saying, “and by the way, the lox that they make ...” To which Page immediately responded, “I know, you can’t break the locks.”

I laughed at Stewart’s ethnic culinary joke and even harder at Page’s non sequitur response. To his credit, Stewart didn’t flinch. Though he tried to salvage the joke, the conversation quickly moved to another topic. No doubt, when he reviewed the tape of the show he mused and was bemused by the shmeared exchange.

It’s Tuesday Free Movie Day: Only until the end of May. My fellow senior citizens and I have been dealt a cruel blow. In the same week The NY Times came out with its summer movies preview section, we received notice that free Tuesdays and discounted-films-all-other-times at Clearview Cinemas we qualify for as part of our Cablevision Optimum Triple Play package will terminate by the end of the month. 

Cablevision has sold Clearview Cinemas. Until the company follows through on a promise of new movie deals, this will be a looong summer. Not just for me but for many seniors who took advantage of the free movies on Tuesdays. The promotion was not restricted to those in the sunset years, but we have been the major beneficiaries of the benefit. With everyone trying to stretch their bucks as far as they can, the free movie deal was a real bonanza. Consider this: Seniors normally pay $8 per ticket. You were entitled to two free tickets per week. If you went to the movies at Cleaview just one Tuesday a month, by yourself, you’d save $96. Go more often, or with a spouse, partner or friend, and the savings really added up. 

During the winter, the first screening started around 4 pm. But during the summer it was pushed up to around noon. Over the last few years I thought I’d take more advantage of the deal but something more important always came up. Now I’m feeling kinda disappointed I didn’t see more free films. 

News Updates: Gilda’s averaging a little more than 45 miles per gallon in her Ford C-Max. She’s even logged in a 50-plus mpg drive to work (the car informs you what your mpg was each time you turn off the motor). ... A quarter of the baseball season has passed and the NY Yankees are in first place. I readily admit it, I never expected this. Nor did I expect the Yanks to be among the American League team leaders in home runs, have the best earned run average and be ranked third in team defense. All this without a laundry list of high-priced veteran stars on the disabled list. Which should make Yankee fans wonder if our pursuit of top-dollar free agents might be a mistake going forward. Perhaps all we need are hungry-to-succeed players bolstered by a Robinson Cano who is having a monster of a year. ... Did you notice that American retailers did not join in the global effort to monitor and fund work and building conditions in Bangladesh. The plan was good enough for foreign-based retailers such as H&M, Inditex (Zara) and C&A to sign on, but U.S. companies like Wal-Mart and Gap resisted, believing their individual efforts would be better. Perhaps, as well, they feared being told what to do. It’s the same mentality that scuttled U.S. approval of a proposed United Nations treaty that would regulate international weapon sales despite the treaty’s specific language guaranteeing each country the right to maintain its own internal regulations, in our case the Second Amendment right to bear arms. ... JC Penney’s new/old boss Myron “Mike” Ullman has reinstated sales and pushed an aggressive advertising campaign acknowledging mistakes and asking disillusioned customers to come back. The ads have good production quality but the problem is they don’t reflect what’s going on inside the stores. Until Penney shifts its merchandise to match its customer profile, no amount of advertising will turn the battleship around. ... Here’s another example of Target getting a pass on a practice Wal-Mart would be crucified for: A new union election has been ordered for a Long Island store after it was ruled Target  acted improperly to stifle the vote, including threats to close the store if the union won certification. Wal-Mart’s constantly being harangued for its anti-union attitude. But few if any of the “sophisticates” who prefer “Tar-zhay” to Wal-Mart reconsider their patronage of the Minneapolis-based discounter.  

Bangladesh and Corporate Social Responsibility

In the three weeks since an eight-story garment factory building in Bangladesh collapsed and entombed more than 1,100 workers, there have been lots of media reports about the responsibility of American and European retailers and brand name companies to be more proactive in monitoring and demanding greater safety in the factories that inexpensively produce goods to be sold throughout the world at prices that would be far beyond the reach of the women and men who make them for an average monthly wage of just $37.  

The scramble is on. The scramble to avoid the appearance of insensitivity. Retailers and their brand name suppliers are scrambling to distance themselves from multiple tragedies in Bangladesh and Pakistan, even as worker-advocates press them to force their foreign manufacturers to be more conscious of safety and living wage measures (http://www.nytimes.com/2013/05/11/business/global/clothing-retailers-pressed-on-bangladesh-factory-safety.html?ref=business&_r=0). 

They don’t want their good names sullied by horrific misfortunes half a world away. Yet, like our politicians who often kick the can down the road rather than tackle controversial issues such as social security or tax reform, the retail community rarely takes decisive action. My 30-plus years covering the industry, reinforced by my reporter’s sensibilities, make me a cynic. Sadly, my feelings can be summed up by the last paragraph in The NY Times story linked above: 

“Kellie A. McElhaney, an expert on corporate social responsibility at the Haas School of Business at the University of California, Berkeley, predicted that these pressures would hardly sway the companies. ‘They are feeling a lot of pressure, but it’s not coming from consumers. It’s coming from N.G.O.’s,’ she said, referring to nongovernment organizations. ‘They’re not feeling it in the marketplace. I believe they’re going to do the bare minimum. The N.G.O.’s need to make more consumers aware of this.’”  

Here’s why I’m a cynic: Perhaps 10 to 15 years ago my magazine co-produced a conference called Making It Right. We worked with several corporate social responsibility NGOs to raise awareness about the sordid conditions many foreign workers were forced to toil under as they prepared apparel, sporting goods and other products Americans eagerly consumed because they were less expensive than they would be if U.S. workers produced them, or if higher wages were provided to the populations in Sri Lanka, Pakistan, Bangladesh, Vietnam, China or any of the other Third World countries exploited for their cheap labor. Meeting at the Tenement Museum on Manhattan’s Lower East Side to plan the event, our conference advisory board had representatives from Gap, J.C. Penney and other retailers. Held at the Grand Hyatt Hotel in New York City, the conference attracted several hundred industry attendees. It was a thematic success, but little of any progress was made.

My takeaway from that conference was that price was the overwhelming driving force behind corporate decisions where sourcing would originate. For a few scant pennies per item, manufacturing contracts would shift from one country to another. Bangladesh became the second largest apparel producer in the world, behind China. If tragedies persist, and they surely will, the result most likely will not be safer standards or higher wages in that impoverished country. Rather, the people of Bangladesh, who rely on the garment industry for much of their economy, will be hurt by the desertion of apparel contracts as retailers and brand name companies migrate production to countries with low wages and labor conditions not (yet) under the media spotlight.

Though there have been some reports consumers are becoming more conscious of where and how their purchases are produced, I’m not optimistic there will be a tidal wave of change. I don’t profess to be any better than the next person. I’d rather spend less on everything I buy, assuming the quality is comparable. But I do believe retailers, especially large companies like H&M, Wal-Mart, Target, Nike, Gap, and their important suppliers, such as Ralph Lauren and Calvin Klein, can demand more accountability from their overseas factories, even to the point where they underwrite safety improvements. The few pennies more each of us in America and Europe would pay to prevent catastrophes would hardly impact our way of life. But it would go a long way into assuring a better life, maybe even continued life, for those faceless workers who make our lives easier and more fashionable.