Company Town - Paternalism

Paternalism

Paternalism, a subtle form of social engineering, refers to the control of workers by their employers who sought to force middle-class ideals upon their working-class employees. Paternalism was considered by many nineteenth century businessmen as a moral responsibility, or often a religious obligation, which would advance society whilst furthering their own business interests. Accordingly, the company town offered a unique opportunity to achieve such ends.

Although many prominent examples of company towns portray their founders as "capitalists with a conscience", for example George Cadbury's Bournville, if viewed cynically the company town was often an economically viable ploy to attract and retain workers. Additionally, for-profit shops within company towns were usually owned by the company which were unavoidable to its isolated workers thus resulting in a monopoly for the owners.

Although economically successful, company towns sometimes failed politically due to a lack of elected officials and municipally owned services. Accordingly, workers often had no say in local affairs and therefore felt dictated to. Ultimately, this political climate caused resentment amongst workers and resulted in many residents eventually losing long-term affection for their towns; such was the case at Pullman.