Conglomerate Blog: Business, Law, Economics & Society

A couple of weeks ago Christine posted about Bank of America and other companies that had programs offering incentives to employees who purchase hybrid cars. In addition to Bank of America, Google gives employees $5000 if they purchase a hybrid and $2500 if they lease one, while Timberland apparently gives employees up to $3000 back plus front row parking for purchasing a hybrid.

As Christine noted, this kind of incentive program receives a boost from the federal government in the form of tax credits. However, as the New York Times reports, apparently this boost is getting ready to evaporate. This is because when the federal government created the program it capped the number of cars from any single manufacturer eligible for a tax credit. For example, unless Congress changes the law, because Toyota has reached its cap, by October 2007, buyers of the Prius will not be eligible for a tax credit.

Of course with corporate incentives and rising gas prices, such a program may still represent a good deal for employees.

Regardless of how long it lasts, one would think that the program would be viewed in a positive light given that recent surveys suggest that the public believes corporate commitment to socially responsible behavior should focus more on employees than other efforts like charitable contributions. Yet not all employees appear to be happy with such programs. Indeed, while some think it is a positive development, others express resentment because they believe either that the program reflects an effort by corporations to force employees to be PC or that the program gives an unfair advantage to employees who have the money to purchase new cars, while apparently penalizing those employees who protect the environment by walking or riding their bikes to work. Given the number of employees who appear to be taking advantage of corporate hybrid incentives, these reactions may reflect the views of just a small percentage of employees. Nevertheless I find them troubling because they suggest (a) the tendency to treat all corporate expenditures as a zero sum game, and (b) some hostility towards corporate efforts to engage in socially responsible behavior—or perhaps employees simply believe those efforts to be disingenuous.

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A couple of weeks ago Christine posted about Bank of America and other companies that had programs offering incentives to employees who purchase hybrid cars. In addition to Bank of America, Google gives employees $5000 if they purchase a hybrid and $2500 if they lease one, while Timberland apparently gives employees up to $3000 back plus front row parking for purchasing a hybrid.

As Christine noted, this kind of incentive program receives a boost from the federal government in the form of tax credits. However, as the New York Times reports, apparently this boost is getting ready to evaporate. This is because when the federal government created the program it capped the number of cars from any single manufacturer eligible for a tax credit. For example, unless Congress changes the law, because Toyota has reached its cap, by October 2007, buyers of the Prius will not be eligible for a tax credit.

Of course with corporate incentives and rising gas prices, such a program may still represent a good deal for employees.

Regardless of how long it lasts, one would think that the program would be viewed in a positive light given that recent surveys suggest that the public believes corporate commitment to socially responsible behavior should focus more on employees than other efforts like charitable contributions. Yet not all employees appear to be happy with such programs. Indeed, while some think it is a positive development, others express resentment because they believe either that the program reflects an effort by corporations to force employees to be PC or that the program gives an unfair advantage to employees who have the money to purchase new cars, while apparently penalizing those employees who protect the environment by walking or riding their bikes to work. Given the number of employees who appear to be taking advantage of corporate hybrid incentives, these reactions may reflect the views of just a small percentage of employees. Nevertheless I find them troubling because they suggest (a) the tendency to treat all corporate expenditures as a zero sum game, and (b) some hostility towards corporate efforts to engage in socially responsible behavior—or perhaps employees simply believe those efforts to be disingenuous.

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