CEO Aaron Feurstein of Malden Mills

On a bitter-cold December night in 1995, a devastating fire—driven out of control by gale-force winds—raged through the factory complex of Malden Mills, a privately held maker of fabrics (including the well-known Polartec brand) in Lawrence, Massachusetts. The next day, three major buildings lay in ruins, and some three thousand workers faced the prospect of losing their jobs.

But not only did Malden Mills' CEO Aaron Feurstein vow to rebuild his facility, he also promised to pay his workers full salaries for three months. At a time of downsizing and plant closings, Feurstein's decision made headlines around the country.

"We must extend to workers the loyalty we want them to extend to us," the 72-year-old Feurstein explained to students during a January visit to HBS. "In addition," he continued, "I felt an obligation to our community, because so many other manufacturers have abandoned it to seek cheaper labor elsewhere. Since corporations are the center of wealth and power in this country, they are the only ones that can make a difference in addressing poverty and unemployment."

Within a year, new plants and equipment were in place. By 1997, Malden Mills had once again reached its prefire peak of $400 million in sales, thanks in no small part to the productivity of a grateful work force.

"I did what I thought was right," Feurstein declared, "the way my father and grandfather had done for a lifetime before me when they ran the company." Then, reciting the Hebrew from memory and rendering his own translation of the words that Rabbi Hillel wrote two thousand years ago, Feurstein said: "Not all those who make a fortune in business are wise in God's eyes. To be wise in God's eyes, you must do your utmost to be a mensch"—a sensible and responsible human being. A standing ovation at the conclusion of his remarks made it clear that in the eyes of his audience, Feurstein had certainly attained that goal.

CEO Jon Corzine of Goldman Sachs

A farm boy raised in a tiny Midwest community of fifty people, Jon Corzine graduated from the University of Illinois, earned an MBA at the University of Chicago, and after working as a banker in the Midwest, joined Goldman, Sachs & Co. as a bond trader in 1975. Rising through the ranks, he became the firm's chairman and CEO in 1994. Last year, he led Goldman to more than $3 billion in pretax profits.

In his first visit to HBS, Corzine spoke in January to a large Burden Hall audience about opportunities in, and the outlook for, the investment banking sector. He predicted good times ahead for the industry amid strong demand for its services as a financial intermediary and advisor. He envisioned continued M&A activity among companies seeking economies of scale and scope and attempting to take full advantage of political liberalization, globalization, and emerging markets. This positive business climate, Corzine noted, will be further energized by the economic dynamism of the ongoing technology and information revolutions.

Opening the floor to questions, Corzine was asked about diversity in Wall Street firms. He responded that in this era of globalization, "Goldman's client base is now the world. Pragmatism alone requires us to reflect that diversity. We're not satisfied with where we are on these issues, but we're going to change that."

Asked about the Asian economic crisis, Corzine confessed that its onset surprised Goldman. "We knew there were problems," he said, "but we didn't understand their extent, particularly with some of the private groups." For several countries he saw reasons for optimism, noting that with economic pragmatism and restructuring, their well-educated populations and strong infrastructures would be assets on the road to recovery. "There will be painful adjustments for many countries," he said, "but one hopes the human cost will not be too great." Noting that private capital has an important role to play in Asia's resurgence, Corzine concluded, "For American financial institutions with long-term perspectives, there are tremendous opportunities in the region based on ties that might not otherwise have been available."

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