After Katrina: the Role of Big Donors

LETTERS TO THE EDITOR

To the Editor:

What’s wrong with America’s largest corporations and wealthiest individuals?

The news-media coverage of the Katrina event is immense and many frustrated journalists are openly directing their criticism and anger at a long list of politicians and government organizations, starting with President Bush and the federal government. Strangely, however, America’s largest corporations and wealthiest individuals are immune to the anger and criticism. Why?

Those consumed by depression and hopelessness, those with no one or place to turn to, those without insurance and without a job to go back to, are probably wondering why corporate America is not responding with truly meaningful contributions to their urgent needs, why the CEO’s of America’s 500 biggest companies (those men and women who received aggregate compensation of $5.1-billion in 2004) are not responding more effectively to their plight, and why American billionaires are so tightfisted with their contributions.

Do the boards of directors of American companies care and know what needs to be done to turn despair into hope for the hundreds of thousands of peoples who lost everything? The figures made public thus far inspire nothing but contempt.

Citigroup’s stingy contribution of $1-million exemplifies what I am talking about, its promises of matching employees’ contributions notwithstanding. Citigroup, a company that during 2004 earned $47-million a day, every single day, and has a net worth in excess of $112-billion probably spends more money in entertainment and other frivolous expenses in one month than what it donated to the Katrina relief fund.

Shame on Citigroup. And shame on every corporation, on every CEO, and on every wealthy individual whose contribution is not at the very least one-tenth of 1 percent of their net worth.

Hugo Zamorano
Managing Director
Angkor Consulting
Santiago, Chile