Lessons Learned from Charles Handy

“What’s a Business For?”

Why are virtue and integrity so vital to an economy?

Markets rely on rules and laws, rules and laws depend on truth and trust. Conceal the truth or erode trust, people will find other places to put their money. This erodes capitalism and we begin to rely more heavily on government for the creation of wealth. Trust once broken is never quite the same. 

Charles Handy says the real justification for the existence of business is to make a profit so that the business can do something more or better.  Profit is a means to a larger end. 

Two of Handy’s solutions that I agree with:

First, businesses sharing after tax profits with the workforce.  Businesses should consider employees as assets rather than costs. Giving back to the people who contributed their skills, not just those who donated money will build trust and loyalty to a company. 

More corporate democracy and better corporate behavior. Corporations should start considering themselves as a group of people who have come together to accomplish something greater than they could do alone They should make it a priority to contribute to society, measuring success in terms of outcome for others as well as themselves.

A parting thought on this week’s studies

Elder Robert Gay in a talk titled “Entrepreneurship and Consecration” said: “Beyond making ends meet, whether you have little or much will never be a fundamental determining factor of personal peace and happiness, rather, it is your attitude toward wealth that will be critical.”

This is a great stopping point for some self-reflection.  What is our attitude toward wealth? Whether looking at this from a business aspect or on a personal scale, I think this quote is applicable to everyone looking for the true happiness that comes from having integrity and doing what’s right.