HowBusinessHistoriansCanSavetheWorld—
FromtheFallacyofSelf‐madeSuccess
PamelaWalkerLaird
Abstractfor“TowardsaNarrativeTurninBusinessHistory?”Workshop
CopenhagenBusinessSchool*28‐29November2013
ImagineaNewYorkCityinwhichpeoplescoffedatDonaldTrump'sclaimsof
self‐madesuccessnotjustbecauseheinheritedapproximately$44,000,000,but
evenmorebecausehisnotionsofself‐improvementandambitionneverincluded
enhancinganycommunity—localorglobal.Likewise,imagineamodernWestern
cultureinwhichthegoalsof"individualism"calledforindividuals—ruggedor
otherwise—tochallengeandimprovethemselvesinordertoimprovetheir
communities.Imagineboastingaboutbeingself‐madebecausethatfulfilled
ambitionsforcitizenship!
ThatwoulddescribethemodernitythatBenjaminFranklin(1706‐1790)
wishedforus.Suchwouldbethemodernityforwhichhehadintendedtoserveasa
rolemodel.Heleftbusinesspursuitsassoonashehadwhatpeoplethencalled“a
competence,”andspenttherestofhislifeinscienceandpublicservice,most
famously,foundinganewnation.Nonetheless,Franklin'sexampleandwritings
cametoinspireandguidecountlessyouthstoindividualist,narrowlyfocused,
materialsuccess.
ThomasMellon(1813‐1908),founderofMellonBankandfathertothe
powerfulAndrewMellon,1exemplifiedourmodernity,notFranklin’s.Asaboy,
Mellonfounda“dilapidated”editionofFranklin'swritings.Hecreditedthat
discoverywithsettinghimonapathawayfromhisfather'sfarmanditsharshand
1
boringlabortowardentrepreneurialopportunityandfortune.Mellonproclaimed
thatFranklin“inspired”him“withnewambition”toprosper,providingthe“turning
pointof[Mellon’s]life”andteachinghimhowtoaimfor“wealthandfame.”With
thisinspirationhedeterminedthat,he,too,would“workhiswayupintheworld.”A
grandsonlaterconfirmedthatMellon“reveredBenjaminFranklinaboveallmen
andFranklin’snamefrequentlywasonhislips.Theboysinourfamilyliterallywere
broughtuponFranklin....FranklinbecameasortofgenieoftheMellonfamily.I
cannotexaggeratetheinfluence.”2
NowheredoesMellonindicatethatFranklininspiredhimtobecomea
communitybenefactor.Instead,Mellon’sambitionsandaccomplishments
ceaselesslytargetedhisandhisfamily’seconomicsuccesses.3
Self‐making’sHistoricalRoots
HowdidFranklin’snarrativeofself‐improvement,worldlybutnotmaterial
ambition,andpublicserviceevolveintoaverydifferentandpotentnarrative?The
modernnarrative,instead,inspiresandlegitimatesmaterial,individualistic
ambition,justifyingclaimsoncollectiveresourcessuchaspublicesteem,public
assets,politicalpower,andmaterialfortune.
Theeighteenth‐centuryFranklinembodiedamid‐waypositioninthe
evolutionofself‐makingfromamuchearlierspiritualandcommunity‐oriented
idealintoanindividualisticidealthatcametolegitimateworldly,material,andself‐
interestedambitions.AlthoughnotaCalvinisthimself,Franklingrewupinthat
tradition,borncloseintimeandplacetothedeadlySalemwitchtrialsthat
manifestedanearlystageofculturalstrugglesintransitiontowardindividualistic
2
capitalism.4AtthecoreoftheCalvinisttraditionwasapowerfulsenseof
individuals’debtand,therefore,responsibilitytoGodandGod’scommunity.That
notionofself‐makingcalledforbuildingone’scharactertodoservice.AsJohn
Winthrop,afounderandgovernorofMassachusetts,declaredin1630,“theendisto
improveourlivestodomoreservicetotheLord.”Althoughsocialandeconomic
inequalitieswereinevitable,theywereentirelyofGod’screationanddidnotreflect
individuals’merits.Thus,successraised,notlowered,responsibilitiestoGod’s
community.5Expectedtopursueaffluence,Calvinistsoftenfoundthemselvescaught
inatensionthatBostonministerJohnCottondescribedintheearly1600sas
“diligenceinworldlybusiness,andyetdeadnessetotheworld.”6Theymeantto
prosper,butselfishnessandprideremainedsins.7
SomeConsequencesoftheSelf‐madeConceit
U.S.publicpolicieslongagosuccumbedtowhatbecamethe“conceitofself‐
madesuccess.”Forinstance,Americanhistoryisrepletewithinstancesofelites
makingclaimsoncollectiveresourcessuchaspublicesteem,publicassets,political
power,andmaterialfortune.8DonaldTrump’sruthlessdemandsforallofthese
rankamongthemostoffensiveandbizarre.Muchearlier,in1832onthecuspofthe
narrative’stransition,HenryClayfamouslyusedthephrase“self‐mademen”inthe
U.S.SenatewhiledefendingtheAmericanSystemandfederalsupportfor
manufacturing.ClaypraisedKentuckymanufacturersas“enterprisingandself‐
mademen”whodeservedthenation’sfavorsbecausetheyhad“acquiredwhatever
wealththeypossessbypatientanddiligentlabor.”9
3
Clay’swascertainlythemostfamoususeofthephrase“self‐made”inthe
earlyRepublic.10Nonetheless,Clay’susewasnotthefirst—noteveninCongress,
whereafellowKentuckianhadprecededhim.In1817AlneyMcLeanhadargued
thatmen“amongthelowerandmiddlewalksoflife...astoproperty...whomightbe
styledself‐mademen”wereworthierofelectionthanthe“morewealthy”becauseof
their“talents,morality,industry,andintegrity.”11McLeandrewuponthecenturies‐
oldcalltoservecommunitybybuildingone’scharacterandworkingdiligentlyin
one’svocation.Thetruemeasuresandrewardsofsuccessinthisoldernarrative
werespiritualandcommunal,notworldlyandpersonal.Incontrast,Clay’susage
reflectedwhathasbecomethestandardconnotationinmainstreamdiscourse,a
tributetoworldlysuccess.Moreover,whereasMcLeanlauded“self‐mademen”for
whattheycoulddoforthenation,Claypraisedsuchbusinessmeninordertogarner
supportfromthenation.
Tensionsbetweenthetwointerpretationsragedduringthenineteenth
centuryintheUnitedStatesandBritain.12SocialDarwinistsgloriedinwhatthey
interpretedtobetheheroismofindividualswhorosetoworldlysuccessdespite
dauntingobstacles.Ontheotherhand,SocialGospelersworriedthatindustrialand
urbangrowth,alongwithrapidlyexpandinginequality,reflectedandexacerbated
diminishingcommunityloyalties.Suchheateddebateselicitedintenseand
voluminousdeclarationsofideology.Despitethewealthandpowerpromoting
SocialDarwinism,SocialGospelersheldtheirownbetterthanwemightnowexpect,
providingthefoundationforProgressivismandtheNewDeal.Nonetheless,so
successfulwereSocialDarwinistsinthiscompetitionforculturalauthoritythatthey
4
ultimatelydefinedthedominantnationalideal.TheyevenclaimedthefamousSocial
GospelerHoratioAlgerasoneoftheirown,althoughnotoneheroinhiscountless
popularboys’storiesgotrichor“pulledhimselfbyhisbootstraps”withouthelp
fromothers.13
AccordingtoapopularadvocateofSocialDarwinismin1888,“Thechief
gloryofAmericais,thatitisthecountryinwhichgeniusandindustryfindtheir
speediestandsurestreward.Fameandfortunearehereopentoallwhoarewilling
toworkforthem.”Neither“classdistinctionsnorsocialprejudices,neither
differencesofbirth,religion,norideas,canpreventthemanoftruemeritfrom
winningthejustrewardofhislaborsinthisfavoredland.”Therefore,Americawas
“emphaticallyanationofself‐mademen,anditistothelaborsofthisworthyclass
thatourmarvelousnationalprosperityisdue.”14
Thisquotation,typicalofinnumerablesuchpaeanstoindividualismand
worldlysuccess,highlightssomeoftheirpsychologicalconsequences.Material
success,forinstance,becameameasureofcharacter.Scholarsandsocialworkers
whoworkonpoverty‐relatedissuestodayseetheeffectsonpoorpeopleofanethos
thattellspeopledailythattheirfailuresareentirelytheirowndoing.Conversely,the
arroganceofthesuccessfulcanbeastonishing,aswhenGeorgeW.BushtoldOprah
Winfreyduringatelevisedinterviewin2000thathehadreceivednothingbut“love”
fromhisparents.
By1900,“self‐madesuccess”reverberatedthroughoutAmericanculture,
withconsequencesinpublicpolicy.Forinstance,in1909,JohnKirby,Jr.,accepted
thepresidencyoftheNationalAssociationofManufacturers(NAM)witharousing
5
speechthatpresumedthatthestate’sproperrolewastosupportbusinessmen.
WhatjustifiedtheNAMinthisexpectation?Itspokeforthe“greatarmyofmenof
wealthandinfluence”whoarose“fromthehumblestconditionsinwhichmenare
born.”Suchmen“yesterdaywerestrugglingtogettheupperhandofpoverty”but
“areto‐dayineasycircumstancesandto‐morrowwillbenumberedamongtheclass
ofmenwhoconstitutetheboneandsinewoftheNation’sprosperity.”Having
“startedinlifewithnothingbutprincipleandpluck,”theywerethemenwhohad
earnedtherighttothenation’srespectandsupport.15
Theseallegedlyself‐madementrulybelievedthattheyhadearnedthat
“wealthandinfluence”andthatthey,therefore,knewbesthowtodirectthenation’s
resources.16AsKirbysaid,theywere“menofintelligenceandcharacter,patriotic
men,towhosekeepingthefutureofthecountrycansafelybeentrusted.”The
supportthattheNAMandotherbusinessmenexpectedandreceivedincludedstate
oppositiontolabororganizations“inthecauseofrighteousindustrial
independence,”aswellasprotectivetariffs,theU.S.DepartmentofCommerce,and
thePanamaCanal.17BusinessmeninPuritanNewEngland,orevenFranklin’sera,
whoclaimedthatpublicresourcesweretheirduebyvirtueoftheir“wealthand
influence”riskedpublicscorn.CalvinistJohnWinthropwouldhaveaccusedthemof
a“covetousandcorruptheart,”ashedidRobertKeaynein1639.18Forthelast
centuryorso,however,thechampionsofindividualist,materialsuccesshavecalled
forourcollectivesupportwithafreeconscienceandtopublicacclaim.
HowandWhyBusinessHistoriansCan
ChallengetheFallacyofSelf‐madeSuccess
6
Theself‐madefallacyalsodevaluesteamwork.Yet,anyonewhofailsto
appreciatethevalueofcooperationandcoordinationwillfailatmostany
professionalendeavor,day‐tradingandgamblingexcepted.Ineednotdocument
thisforanaudienceofbusinesshistorians.Thisunderstandingisonlyonereason
whybusinesshistorians,collaboratingwiththeircolleaguesinmanagementand
organizationstudies,avoidseductionbytheillusionofself‐makingandarewell
suitedtodisabuseothersofit.
Peopleknowledgeableabouthowbusinessesandotherorganizations
operateappreciatetheimportanceofteamwork.Theyalsounderstandthenecessity
forcoordination,flowsofauthorityandresponsibility,andcommunicationwithin
anorganization,evenasmallone.Theyhavealwaysgraspedthatfirmsneedaccess
toexternalfinanceandthattheyare,therefore,exposedtothedemandsand
influencesoffundingsources.Aswell,theyincreasinglyrealizetheintricaciesand
complexitiesofinteractionsbetweenorganizationsandthestate.Allofthese
understandingsimmunizeusagainsttoogreatanemphasisonindividualagency.
Instead,ourfield,ifanything,haserredtoofarintheotherdirection,
minimizingtheefficacyofindividualsand,toooften,defining“thefirm”astheunit
ofanalysis.Someofus,suchasAlfredChandler,erredmoreonthesideofhistorical
determinismthanon“thegreatmantheoryofhistory.”Businesshistoryanalyses
stillfeaturetrendsthatindividualscanshapebutthatarenotsubjecttoindividual
“will”inNietzsche’sorThomasCarlyle’ssense.Individualsprospertotheextent
thattheyinnovateandexcelwithintrends,suchasindustrialization,
bureaucratization,urbanization,etc.Weremainsafefromtheself‐madeconceit.
7
Wecandomore,aswell.PerH.Hansenarguesthat“aculturalandnarrative
approach”canimprovebusinesshistorians’insightsandimpacts.Challengingthe
self‐madefallacyoffersaclusterofopportunitiesfordoingso.Thenarrative’s
laudingofself‐madeheroesalsoconstructsasetofhistoricalmemoriesthatshape
culturalidentities.MadsMordhorsturgesustochallengethesedominantnarratives
withcounter‐narrativesthatcanshapeabetterfuture.19
Businesshistorianscanalsobegintomoveothersawayfromthedominant
Westernillusionofself‐madesuccess.Wecan,forinstance,attackitdirectly.InPull
Iarguedexplicitlyagainstthepossibilityofself‐madesuccessinbusiness(and,by
implication,otherprofessions)becauseoftheimportanceofsocialcapitalinall
professionalinteractions.Mycurrentworktracksbackintoearlymodernhistoryto
recoverthecommunalandreligioussourcesofself‐making’sculturalpotency.
Businesshistorianscanalsochallengeself‐makingnarrativesintheir
analysesoforganizationaldynamicsoroftheinteractionsbetweenfirmsandtheir
financialorpoliticalenvironments.Almosteverypublicationpresentsan
opportunityforasentenceortwotohelpwhittleawayatthenarrative’sbulwarks.
Ifwehaveaudiencesamongbusinessstudentsortheirfaculty,wecancritique
individualisticpresumptionsthatdoneitherindividualsnortheiremployersany
good.IhastentoaddthatIdonotintendthatweadvocateadiminutionofpersonal
responsibilityforproductivework.Thetrickistoappreciatethebalancebetween
individuals’effortsandtheircontexts,withtheultimategoalthatsuccessfulpeople
willrecognizetheirdebtstotheircommunities.
8
AnothermodelfordoingthisworkradiatesfromthepagesofAndrewPopp’s
EntrepreneurialFamilies:Business,marriageandlifeintheearlynineteenthcentury.
Inthisdeeplydocumentedandgracefulmonograph,welearnaboutJohnand
ElizabethShaw,whobuiltasuccessfulfirmwitha“longanddistinguished”life.
PoppcouldhavereconstructedJohnShawintoaself‐madehero.That,however,
wouldhaverequiredignoringtherolesofElizabethShaw,otherconnections,and
complexconditions—toooftenstandardpractice.Insteadhesetout“tode‐centre
or,instead,re‐humanizetheeconomicbyconsideringitinthecontext”ofbuildinga
lifeaswellasafirm.Moreover,for“JohnandElizabethShawtheirentrepreneurship
andfamilybusinessexistedinservicetoagreatersetofprioritiesthatorderedtheir
decisionsandchoicesastheyfollowedtheprojectoftryingtomakealifethatthey
couldconsidergood.”Inotherwords,theybelievedthatfamily,community,and
philanthropywerefundamentaltogainingandlegitimatingtheirmaterial
acquisitionsastheywovetogether“religionandearthlyreward.”Thesearepeople
whomBenjaminFranklinwouldhaveadmired,who“improved”themselvesin
servicetobothambitionandduty.20
1AndrewMellonbecameoneoftheworld’sfinancialleaders,wasTreasury
Secretarytothreepresidents,andbuilttheartcollectionthatformedthebasisofthe
NationalGalleryofArt.
2ThomasMellon,ThomasMellonandHisTimes,ed.MaryLouisBriscoe,2nded.
(Pittsburgh:UniversityofPittsburghPress,1994),33,62;WilliamLarimerMellon
andBoydenSparkes,JudgeMellon’sSons(n.p.:privatelyprinted,1948),22.
Franklin’sAutobiographywasoneofonlyelevenbooks,otherthantheBible,that
soldatleast40,000copiesintheUnitedStatesfrom1790to1799.FrankLuther
Mott,GoldenMultitudes:TheStoryofBestSellersintheUnitedStates(NewYork:R.
R.BowkerCompany,1947),305.Franklin’s1758“WaytoWealth”alsobecame
immenselypopular,continuouslyreprintedwellbeyondthecoloniesintimeand
geography.
9
3Mellon’scharitywasofaprivatesort,assistingpeoplewithwhomhehadpersonal
contactsorrelationships.Mellon,ThomasMellon,47‐79.
4PaulBoyer&StephenNissenbaum,SalemPossessed:TheSocialOriginsof
Witchcraft(Cambridge,Mass:HarvardUniversityPress,1974).
5JohnWinthrop,“AModelofChristianCharity,”(1630)
<https://www.milestonedocuments.com/documents/view/john‐winthrop‐a‐
model‐of‐christian‐charity/text>(accessed12February2012).
6AsquotedinDeanC.Hammer,“ThePuritansasFounders:TheQuestforIdentityin
EarlyWhigRhetoric,”ReligionandAmericanCulture:AJournalofInterpretation6,
no.2(Summer1996):161‐194;quotationp.168.SeeespeciallyBernardBailyn,The
NewEnglandMerchantsintheSeventeenthCentury(Cambridge,MA:Harvard
UniversityPress,1955);ChristineLeighHeyrman,CommerceandCulture:The
MaritimeCommunitiesofColonialMassachusetts,1690‐1750(NewYork:W.W.
Norton&Company,1984);StephenInnes,LaborinaNewLand:Economyand
SocietyinSeventeenth‐CenturySpringfield(Princeton:PrincetonUniversityPress,
1983);andWalterW.Woodward,Prospero’sAmerica:JohnWinthrop,Jr.,Alchemy,
andtheCreationofNewEnglandCulture,1606‐1676(UniversityofNorthCarolina
Press,2010).ThelinksbetweenCalvinismandcapitalismaretoocomplicatedto
addresshere,oreventolisttheanalystswhohaveexploredthequestion.
7Foranin‐depthstudyofthis“palpable”“tensionbetweenself‐interestandthe
generalgood”inearlyNewEngland,seeDavidD.Hall,AReformingPeople:
PuritanismandtheTransformationofPublicLifeinNewEngland(NewYork:Alfred
A.Knopf,2011);quotation195.
8FortheclassicstatementofSocialDarwinism’sjustificationsforusingstate
resourcesonlyonbehalfofthefortunate,seeanyofthemanyeditionsofHerbert
Spencer’s1884TheManversustheState.Amongotherpointstherein,heexpressed
hisconcernsthatapaternalisticstatediscouragedindividuals’effortsatself‐
improvement.
9HenryClayspeakingintheSenateon“TheTariff,”Gales&Seaton’sRegisterof
DebatesinCongress(2February1832),column277(np).Theself‐makingfashion
encouragedClayandhissupporterstoportrayhimashavingpulledhimselffrom
“impoverishedoriginsframedbyhardship,”inthewordsofClay’srecent
biographers,DavidS.HeidlerandJeanneT.Heidler.HenryClay:TheEssential
American(NewYork:RandomHouse,2010),11;seealso166.
10Clayfrequentlygetscreditforhavingcoinedtheterm,evenbyhistorianswho
shouldknowbetter.See,forexample,EricFoner,TheFieryTrial:AbrahamLincoln
andAmericanSlavery(NewYork:W.W.Norton&Co.,2010);JudyArleneHilkey,
CharacterisCapital:SuccessManualsandManhoodinGildedAgeAmerica(Chapel
Hill:UniversityofNorthCarolinaPress,1997);WilliamGoetzmann,Beyondthe
Revolution:AHistoryofAmericanThoughtfromPainetoPragmatism(NewYork:
BasicBooks,2009).
11AlneyMcLeanspeakingintheHouseofRepresentativeson“CompensationLaw,”
HistoryofCongress(January1817),column656(np).
12AsPeterBergerandThomasLuckmannexplaininTheSocialConstructionof
Reality:ATreatiseintheSociologyofKnowledge,(GardenCity,NY:Doubleday,
10
1966),culturalandideologicalpresumptionscometotheforeunderstress.Thus,
bothindividualsandgroupswillmaketheirvaluesexplicitunderpressuresthat
challengetheirviewsorinterests.
13PamelaWalkerLaird,Pull:NetworkingandSuccesssinceBenjaminFranklin
(Cambridge,MA,2006):36‐39.
14WalterR.Houghton,KingsofFortune,ortheTriumphsandAchievementsof
Noble,Self‐MadeMen,(Chicago:TheLoomisNationalLibraryAssociation,1888).
15JohnKirby,Jr.,“AddressofMr.JohnKirby,Jr.,inAcceptingthePresidencyofthe
NationalAssociationofManufacturers,May19,1909,”AmericanIndustries9,no.8
(1June1909):5‐10.
16Laird,Pull,especially39‐46.SeeAndrewCarnegie’softrepublished“Wealth”in
NorthAmericanReview,Vol.149,(1889):682‐689,morecommonlyknownas“The
GospelofWealth,”forhisimportantessayonthedutyofphilanthropybutonlyifthe
wealthycontrolleddistribution.Hedeemedthembestsuitedtomakesuchdecisions
byvirtueoftheirhavingaccumulatedwealth.
17Kirby,“Address,”10.
18JohnWinthrop,“TheCaseofRobertKeayne,”inWinthrop’sJournal:HistoryofNew
England,1630‐1649,vol.1,ed.,JamesKendallHosmer(NewYork:1908),315‐318.
19PerH.Hansen,“BusinessHistory:ACulturalandNarrativeApproach,”Business
HistoryReview86(Winter2012):693‐717;MadsMordhorst,“Fromcounterfactual
historytocounter‐narrativehistory,”Management&OrganizationalHistory3,no.1
(2008):5‐26.
20AndrewPopp,EntrepreneurialFamilies:Business,marriageandlifeintheearly
nineteenthcentury(London:Pickering&Chatto,2012),1‐4,8,114.
11