I take exception to both “Pfeffer: Company Loyalty is Dead — Fend for Yourself!”  http://blogs.bnet.com/harvard/?p=7563 and the referenced article.

A business is a team sport. No one can win alone. If you help the business win and help those around you succeed, you are unlikely to be laid off or stabbed in the back.

At the same time, you must don your own oxygen mask first. Toot your own horn when appropriate. Don’t expect others to intuit your willingness to step up, recognize capabilities you have yet to demonstrate, or identify opportunities to help you grow. Take responsibility for your own career and brand; neither is known to arrive on a silver platter for free. 

What is loyalty? To me it means giving credit where credit is due and giving people a chance who have given you their best. Any business failing to meet these criteria will not deserve, attract, or retain talented employees.

Loyalty does not mean rewarding people who have been given a chance and who have given their best, but who can’t deliver. Neither they, nor the company, benefits from their inability to succeed in the position they hold. It is not disloyal to move them to another position or to encourage them to find a better use for their talents elsewhere.