What's a buisness for? by Charles Handy

 

According to Charles Handy, virtue and integrity are vital to the economy. As businesses overstate profit margins to appear better off to the stockholders, more and more people have become hesitant to trust big corporations. Leaving a fractured economy that feels as if the bottom could fall out at any time with consumers being hesitant to invest, and corporations shy about sharing information. No wonder Handy is returning to Sunday School answers to these big problems. There is a need to return to simpler tactics, like honesty.

Handy goes on the discuss the real reason for business. “It is not to make a profit, full stop. It is to make a profit so that the business can do something more or better.” In other words, they need to have a purpose and a need to fill. This does not mean that the needs are not what others would believe to be frivolous, the need should be justified in one way or another to give a business purpose. Profit would be an afterthought and a means to answer a bigger problem.

Handy offers a few solutions to these issues. One is to amend corporate laws to better fit the business problems of today. Up to date laws that would hold corporations accountable for their treatment of their employees encouraging better care for the public and public investment. Another suggestion that Handy makes is more accountability for executives when reporting the financial circumstances of a company. This may result in a wealth-creating community that is willing to share more truthful numbers that encourage members of a business community to contribute more skill and money to the cause. I agree with both ideas; current laws that encourage honesty and accountability would better reflect the issues of today. Secondly, executive accountability and protection of public interests would encourage more people to actively engage in the good of a company’s purpose and cause