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General Motors, Poletown, MI and The Executive Compass. In 1980, General
Motors’ executives were faced with a dilemma regarding ...
Submitted by jaxparents on March 30, 2008
Category: Business
Words: 1754 | Pages: 8
Views: 132
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In 1980, General Motors’ executives were faced with a dilemma regarding new plant construction in Detroit, Michigan. GM intended to close two of its aging facilities and rebuild new assembly plants at a different site location although still in the Detroit metro area. The only land site matching the construction specifications was a settlement called Poletown, Michigan. This township was home to more than 3,500 residents, all of whom would have to be relocated if construction were approved. The following is an analysis of this dilemma according to the four quadrants of The Executive’s Compass: Liberty, Equality, Community, and Efficiency.
Liberty
Liberty, as defined by J.S. Mill, “is that of pursing our own good in our own way, so long as we do not attempt to deprive others of theirs, or impede their efforts to obtain it” (p.38-39). GM, without careful decision, stands to violate political and economic liberties by exercising powers of eminent domain in the Poletown, Michigan case of 1980.
Eminent domain, the power granted by the government allowing private property to be seized for public use, has been the source of political debate for centuries. Legal cases ruling on different sides of the issue date back more than 167 years. The most recent case to note is Kole v. The City of New London, which was just decided by the U.S. Supreme Court in June 2005. Although the court sided in favor of granting eminent domain, Justice O’Connor quoted the following in her dissent: “Law that takes property from A and gives it to B: It is against all reason and justice, for a people to entrust a Legislature with such powers.” The concept that governmental power should exceed that of the individual right is a cruel violation of political liberty. As stated in The Executive’s Compass, “it degrades the dignity of the individual to make him or her subservient to the will of the state” (p.39). If GM chooses to remove the...
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