Aloha is a social contract!

At FACE we sometimes talk about Aloha as an implied social contract, meaning that the connections between and among the people of Hawaii should have weight in economic, policy and political decisions. Aloha in this context is a quiet yet powerful challenge to the Randian greed is good philosophy that characterizes a wide cross section of the American Finance sector and American culture in general. But Aloha, in the broad and social sense, is neither a grand theory nor a strict moral code. Its like the Tao, elusive and hard to pin down in theory, but crystal clear when it emerges in practice. This week the people of American Samoa were treated to an example of Aloha as a social contract when Bank of Hawaii President, Peter Ho, unilaterally announced that the financial institution would stay in the territory beyond its negotiated deadline of March of 2014. Last year there were some tense moments when Bank of Hawaii announced its plans to withdraw from the territory citing, among other things, failures to make the profit necessary to justify their operations there. The announcement caused uproar both in Samoa and here in Hawaii. Petitions were written and FACE (the faith-based community organizing group I work for), the territorial government, and DC think tanks all mobilized to fight the proposed corporate pull out. Even the Federal Reserve was brought in to convene a special hearing with Samoan Congressman Eni Faleomaega and Samoan Governor Lolo Moliga traveling to Hawaii to testify at the hearing. It is here the story departs considerably from the usual Community vs. the Big Bad Bank narrative. Even during the hearings progress, Bank of Hawaiis President and his close advisors met with the Governor Moliga, Congress members, and community leaders. President Ho was thoughtful and measured in what he said at this meeting, leaving everyone (including the Federal Reserve) happy that the institution agreed to delay withdrawing from Samoa for a year by giving the Governors economic advisors additional time to attract another company to serve his constituents needs. Hos staff admitted they had not considered the larger implications of leaving Samoa, but did not, whatsoever, feel embarrassed or coerced to change or delay their decision by our collective advocacy. As one staff told me, Well we just hadnt understood the bigger picture over there, but now that we do, well get it right. The conviction in the Bank staff and Presidents words won over even the hardened former union organizer who had set up the Reserve Board hearing. In fact, the hearing ended with an impromptu piano recital from the talented Congressman Eni, good feelings all around, and much Aloha! The good will and good faith efforts demonstrated by Bank officials the day of the Reserve hearing was again displayed just last week as the financial institution announced it had, after considering the longer-term impacts, decided to stay in American Samoa indefinitely, giving our neighbor island territory time to create a new community bank to serve and benefit their people. This decision is very important for Hawaii because most of us have Samoan friends

and/or relatives and the loss of the bank threatened to disrupt and harm their islands economy. The disruption would have had serious impacts with Governor Moliga going so far as to call it a looming state of economic emergency in remarks he made last year. The Banks departure would have not only creatde barriers and prevented Samoans here in Hawaii from sending needed support to their family back home, but also disrupted the Government payroll. That is critical because with the loss of a tuna processing factory last year the government is the largest employer. After a deal was struck at last years impactful Federal Reserve hearing, Congressman Eni, a veteran of the DC political environment who helped facilitate the special convening and a Kahuku High School graduate, talked informally about his ties to and appreciation for Hawaii. Aloha shapes a person here, you cant escape it he said. Its always there asking you to be better to the people around you. I felt it when I lived here and you could see it at this hearing and in these negotiations. Nearly one year after the initial announcement of the Banks plans to leave American Samoa, President Ho unilaterally announced the institutions intention to keep their operations going in the territory beyond their initial year-long extension to give Governor Moliga and his team more time to set up a new community bank. Bank of Hawaii was under no obligation to change their decision but did so to uphold an internal standard of and commitment to social responsibility that shines all the brighter because it is so rare in our era of maximum gain. This is the power of Aloha as a shared social value and an implicit social contract in action. Or as you might say, now thats my Bank!