While American manufacturing jobs have declined as businesses outsource to cheaper overseas locations, one company has defied this trend. For over eighty years, Lincoln Electric has combined guaranteed employment with high paying jobs for its three thousand Cleveland-based workers. This isn’t charity. Lincoln Electric is highly profitable and has generated attractive long-term returns for its shareholders. The secret lies in founder James Lincoln's radical management philosophy. Lincoln believed industry's purpose was "to make a better and better product to be sold to more and more people at a lower and lower price." He treated workers with respect, establishing advisory boards, profit-sharing, and stock ownership. But unlike George Eastman's unconditional generosity at Kodak, Lincoln demanded excellence in return. Intense work pace and rigorous performance evaluations underpinned the company’s superior productivity. Lincoln Electric’s culture was tested in the early 1990s when misjudged international expansions plunged the company into crisis. To offset losses from overseas divisions, American workers gave up holidays and worked extra shifts. During this period, the company borrowed money to pay staff bonuses, demonstrating the trust between management and staff. Lincoln Electric’s story proves that enlightened employment practices and competitive advantage can reinforce each other, but only when performance expectations match generous rewards.