In the United States, we like and admire people who make money. So you would think people who like Phil Ruffin, an industrialist whose $165 million investment nine years ago is now worth 1.2 billion.

But even with $1 billion in profits in his pocket, Ruffin can't buy a friend in Vegas.

When profits aren't enough

Ruffins sale of the New Frontier Hotel and Casino in Las Vegas will cause it to close on July 15 2007, leaving 900 workers without jobs. The building will be demolished and the New York investors who have bought it plan to build a replica of New York's Plaza Hotel in it's place.

Ruffin is walking away with his profit. He says he has fulfilled the terms of a union contract that does not require severance for workers if the property is sold or closed.

Too bad he doesn't get it

Ruffin needs to understand that the days of companies being accountable only to their owners are over. That was a flawed notion from the get-go and it looks even worse as time passes.

A better way to do business

Companies need to assume a social conscience. The chief executives of companies today must make that as big a priority as share holder returns or they risk alienating large segments of the population. Look at these roll models:

Gary Tooker, Motorola: As an example of the company's commitment to evolve and continually develop new products, it sets aside an amount equivalent to 4 percent of payroll annually for training. Every employee is expected to spend at least 40 hours a year on training. The message Motorola sends to its workers is clear: We want you to be better employees and we will help you do that.

Howard Shults, Starbucks: Shultz single-handedly made the United States quit looking at part-time workers as second-class citizens. Under his guidance, Starbucks established a program that paid part-timers well including offering them sick leave, benefits and stock options. The results Starbucks has a motivated and dedicated staff and as a result, superior customer service. This is one factor that has helped Starbucks continue as one of the most dynamic companies in the world.

The new success model

Companies like Motorola and Starbucks succeed on several levels. First, they are well-run, profitable companies so shareholders are happy. Second, they treat employees well, which builds employee commitment and helps the companies recruit better workers. Third, the companies are socially responsible, not just making a buck. They make money, but they also make the business climate better for shareholders, employees and the general public.

Ruffin can walk away from Las Vegas with his riches, it's doubtfull whether he will walk away from his nagging internal monitor - that some of us call a conscience - which might otherwise have prompted him to reinvest some of those handsome profits on improving the lives of his former workers.

Michael Kinsmen writes the Career column for Copley News Service.

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