Slip-sliding away...

I hold a Political Science degree from Indiana University. One of the things I learned was the concept of the "Slippery Slope". It's one of those things everyone thinks they know about but it's not quite what they originally thought.

Here's a quick definition: If A happens, then by a gradual series of small steps through B, C,…, X, Y, eventually Z will happen, too. Z should not happen. Therefore, A should not happen, either.

Most academics will tell you that the Slippery Slope is a fallacy--there's no way to be sure that Z will happen until it actually does. And steps B, C and so forth don't necessarily ensure that Z happens either.

But in our world right now I feel my feet falling out from under me. Today at msnbc.com there was a homepage story on Northern Trust Company, which is under fire for events surrounding NT's sponsorship of a PGA Golf Event.

The article describes the "lavish" expenditures on hotels, gifts, and concerts during the tournament. Some in Washington (16 members of Congress in particular) are insisting NT refund to the government the cost of these events because NT accepted funds as part of the Federal Bailout.

The article soft-pedals the fact that NT didn't ASK for Federal funds--it took them because of the goal of securing participation from all major banks in the US. It mentions (albeit on page 2) that NT is actually profitable--it earned $794 million in 2008.

These events were designed to reward outstanding employees and to develop new business.

The Slippery Slope is happening right in front of our eyes-and it materially impacts all of us that make our living by helping Corporate America recognize its significant stakeholders. This is serious stuff and not just grandstanding Congresspeople trying to pile on.

Where does this end? Banks and Wall Street brokerages are easy targets and they haven't done much to reduce their radar signatures. But it's a very short trip from TARP to any other company that takes Federal (or even State) funding. What happens to recognition and incentives when what has been "legitimate" business development activity becomes "extravagant"?

Will it become a PR nightmare to hold an incentive trip? Will the blood in the water cause more politicians to rail against the Robber Barons and see every form of recognition as sending the wrong message? And what of those companies that depend on these events and programs? Like you and me? What are we gonna do?

We need better-gripping shoes, that's for sure--the Slope is changing...


Pete