What's a business for?

 

Week 12 Journal entry by Colleen Manley            

Based on what you read in the first two pages, why are virtue and integrity so vital to an economy?  Virtue and integrity are vital to a thriving economy because when it is present in a free market, people are more willing to invest their money in the stock market.  Charles Handy said,  “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. The markets will empty and share prices will collapse, as ordinary people find other places to put their money – into their houses, maybe, or under their beds.” America has its challenges with Capitalism, especially when big corporations lose the trust of the shareholders and stockholders.  So yes, virtue and integrity are vital to a thriving economy.

According to Charles Handy, what is the “real justification” for the existence of businesses?  In the article we read that the real justification for the existence of business is to make something better.  He said, “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.”  He finds that greed is what seems to be the motivation for CEO.  They now make upwards of 400% more salary than their lowest paid employee.  I find this despicable.

What are two solutions proposed by Handy that you agree with? Why? One of the solutions that I agree with is give after tax distributions to the workers in the company.  This gives them a buy in and makes them want to give more effort to the company.  “It seems only fair that dividends be paid to those who contribute their skills as well as to those who have contributed their money.” (Handy)

The other solution I agree with is that corporations should be concerned about the effects of their company on the environment.  If they want their company to be around for generations, they need to help us take care of our planet earth.

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