The attitude towards Charles Koch in American society is controversial. On the one hand, he is a successful businessman who created one of the largest US corporations, on the other, he is an active politician who haunts ideological opponents. It is thanks to politics that he became known to the general public, and the scale of his campaigns is impressive.
Harsh upbringing
Koch was born on November 1, 1935, in Wichita, Kansas, USA, to a wealthy family of Dutch immigrants. Despite the opportunities that high status provided, the boy was taught to work from an early age. The billionaire himself recalled: “My father wanted me to work as if I were the poorest person in the world.” From the age of six, Charles had to work all day while his friends played – later the businessman also raised his children.
Koch graduated from the Massachusetts Institute of Technology in 1959 with a master’s degree in engineering. His research interests also included the search for new ways to refine oil – mainly because of the family’s oil refinery, which Charles was to manage after his father. After graduation, Koch got a job at the international consulting company Arthur D. Little Inc. but did not work there for long.
Koch Industries
In 1961 he returned to his hometown to help manage the family business. After his father died in 1967, Charles became president of the company and in memory of him renamed the company Koch Industries. The shares were inherited by his brothers David, Frederick, and William. In 1983, Charles and David bought out the remaining shares for $ 1.1 billion after lengthy litigation and battles with two other brothers on the board of directors. But the final disputes between them ended only in 2001 when Koch Industries paid Frederick and William another $ 25 million.
In the 70-80s. Charles and David actively developed and expanded the regional company, building new refineries in the United States and then around the world. In particular, in 2000, the corporation had over 17 thousand employees, and in 2019 – 120 thousand in 60 countries. In addition, businessmen mastered other areas: chemical production, agriculture, finance, and electronics. The Koch brothers claimed that they would reinvest 90% of their profits in the family business.
Today Koch Industries is one of the largest private corporations in the United States. It includes the Flint Hills, Koch Minerals, Koch Ventures / Genesis refineries, the polymer fiber manufacturer Invista, the Georgia-Pacific pulp and paper company, and others. Charles Koch is famous for raising an economic giant from a family firm, whose annual turnover today amounts to hundreds of billions of dollars.
Own management philosophy
In management, Charles takes a special “market approach”: it is based on encouraging employees to act and think like entrepreneurs. Moreover, each of them is personally responsible for their work. Koch believes that the same principles that underlie the market economy can be successfully applied within an individual company.
At Koch Industries, he worked to create a corporate culture of continuous improvement: here employees are not paid a fixed salary but are calculated based on the benefits they bring. Charles says of his management philosophy: “We try to assess the value the employee is creating and reward them accordingly.” The billionaire has even published a book on the psychology of doing business in which he talks about this unique management model.
Political life
Koch is actively interested in US political life and sponsors the Conservative Party. For example, in 2012, he spent about $ 400 million to prevent Barack Obama from recapturing the US presidency. According to the billionaire, this is only part of his big political strategy of building a “real democracy” in which citizens will decide for themselves how to live.
In the 70s. the Koch brothers were the founders of the libertarian institute, which works to promote economic freedoms. Since David died in 2019, Charles has single-handedly sponsored this and other political organizations that correspond to his views – liberal, republican, and even conservative. Although, in general, the position of the brothers is seriously at odds with what the main parties are promoting. For example, David Koch supported the LGBT movement, and gay marriage and criticized the fight against drugs.
Nevertheless, the brothers’ vigorous activity and the strategy they chose have yielded a result: the family indirectly influences the decisions made at the very top of the American government.
Today Charles is one of the most influential people in the world but at the same time one of the most hated. The Koch family has tremendous influence over politics and business, which they use in their interests – this is the main reason for criticism. Charles is accused of creating a network of secret political organizations, the same response that he has the right to confidentiality in connection with the constant threats against his family and company.
