Where Gillette CEO went wrong

THE BOSTON MEDIA nicknamed Gillette Chairman and CEO James M. Kilts ''King Kilts." Last week, Kilts described himself as ''Boston's Pinata." Both names are inaccurate. In a self-pitying and self-righteous speech to the Boston Chamber of Commerce, Kilts revealed his true indentity: the emperor who wore no clothes.

It became very clear that Kilts is used to working and living in an environment reminiscent of the fairy tale emperor's kingdom, a place where there is no criticism -- only praise. Indeed, when Kilts's namesake regent was convinced by the royal court that his suit spun from gold was magnificent, he ventured into public, where a small child pointed out that he had nothing on.

Kilts took on the Boston media for what he called ''profound ignorance," ''inflammatory rhetoric," ''unsubstantiated, inaccurate, and irresponsible criticism," and he said the media ''unnecessarily fueled fears and hostility toward big business."

Leaving no stone unturned, Kilts then turned his guns on Massachusetts politicians who he said ''have tried to make a name for themselves by beating up on business." Kilts urged the chamber to ''withhold support from politicians who make attacks on business a central part of their campaign."

As former CEO of John Hancock Financial Services, I know what it is like to try to maximize shareholder value and sell to a non-Massachusetts entity, I know what it is like to make mistakes and be subject to media criticism and political pressure. It comes with the territory. It's not easy -- it's not supposed to be -- but as everyone knows, CEOs like Kilts and myself are paid extraordinary sums to deal with all these issues and more.

There may not be an absolute right way to accomplish what is expected, but there certainly is a wrong way, and Kilts managed to find it.

Whether a deal makes financial sense is ultimately up to the shareholders -- and Gillette's shareholders have now approved. So, it was good enough for their financial appetites. But they are not the only constituencies here.

Like many others, Kilts acts like a pure capitalist creature. He justifies his actions by speaking in one dimensional ''Wallstreetese" -- as if no one else counts except shareholders. When Gillette intially announced its merger to Procter & Gamble, Kilts virtually ignored these constituencies and spoke mainly of shareholder value.There are many other stakeholders for any corporation: communities, employees, vendors, retirees, nonprofits, schools, and families are also constituents. They all have a vested interest in what large corporations do as they can be deeply affected by job losses and diminished corporate community funds.

Furthermore, Kilts was personally never part of our community anyway. He never moved here, commuting from Rye, N.Y., and even holding his ''worldwide annual meetings" within a few miles of his home. According to the Chamber of Commerce, his speech was his first-ever appearance at the chamber.

The criticism leveled against Gillette and the concerns expressed are a direct result of this corporate giant appearing not to care about anyone or anything except stock price. Naturally, there will be questions when you announce a merger with little mention of local employment decreases, community giving changes, and vendor revenue impact.

Your underlying intent is questionable when you wait until after you are called to task to run around and try to appease your critics with assurances on jobs and community funding.

Kilts needs to understand that the media and politicians have an obligation to question the impact of big business on the public. They should criticize, cajole, question, and probe. In the post Enron, WorldCom, Adelphia era, that is even more so.

Among the reasons our forefathers wrote the First Amendment was to allow open debate and to prevent anyone from becoming emperor.

David D'Alessandro is a former CEO of John Hancock Financial Services.