Becoming a Change-Maker

 

Based on what you read, why are virtue and integrity so vital to an economy?

    We read an article from the Harvard Business School titled, What’s a Business For? written by Charles Handy. Because of recent financial scandals people are reexamining the purpose of businesses. Several scandals have created a distrust in corporate leadership based on fraudulent financial reports. Handy said, “Not everyone is so complacent. Markets rely on rules and laws, but those rules and laws in turn depend on truth and trust. Conceal truth or erode trust, and the game becomes so unreliable that no one will want to play” Investors want to trust the financial reports given. The investors want to be making wise choices with their money. Handy says, “Trust, too, is fragile. Like a piece of china, once cracked it is never quite the same. And people’s trust in business, and those who lead it, is today cracking. To many, it seems that executives no longer run their companies for the benefit of consumers, or even of their shareholders and employees, but for their personal ambition and financial gain.” Creating financial documents with integrity will help to build trust with the investors in the future. People want to have faith that they leaders of the company they are investing in are people that have virtue as a leading characteristic.

According to Charles Handy, what is the “real justification” for the existence of businesses?

    In the article Hand says, “The purpose of a business, in other words, is not to make a profit, full stop. It is to make a profit so that the business can do something more or better. That “something” becomes the real justification for the business. Owners know this. Investors needn’t care.” Handy discusses the importance of helping others. We need to think of how we can make the world a better place, not just make ourselves more money. “To mistake the means for the end is to be turned in on oneself, which Saint Augustine called one of the greatest sins.” implores Handy. Thinking about helping others is what a business is really trying to accomplish.

What are two solutions proposed by Handy that you agree with? Why?

1.    “More honesty and reality in the reporting of results would help for a start.”

a.     I totally agree with this solution that Handy proposed. 

b.  We need to have a sense of honesty from those who are running companies. We also need to have reality in looking at the financial reports. We can not always be growing at record rates.

2.     “Global businesses not only do harm, but that the harm outweighs the good. If those charges are to be rebutted, and if business is to restore its reputation as the friend, not the enemy, of progress around the world, then the leaders of those companies need to bind themselves with an equivalent oath. Doing no harm goes beyond meeting the legal requirements regarding the environment, conditions of employment, community relations, and ethics.”

a.     I agree with this solution proposed by Handy. 

b.  We have all heard of cases where a company dumps toxic waste in an illegal way to avoid expensive costs. This would be unacceptable if the people in charge were honest and committed to “Doing no harm.” We must as a community of business leaders set an example of doing what is right even if no one is watching.