This week for my entrepreneurship class, I read an article
written by Charles Handy, “What’s a Business For?” published in the December
2002 Harvard Business Review. He
suggests that virtue and integrity are vital to an economy. Why?
According to an online dictionary virtue is defined as showing high
morals standards and integrity is the quality of being honest and having strong
moral principles; moral uprightness. My
husband has worked for over a quarter century in the medical device, biologics
and pharmaceutical industry. His
industry is governed by standards and the FDA.
These standards are “self-imposed” by organizations that have met to
create standards that the industry follows.
The FDA quite often recognizes these standards as valid principles for a
company to follow. We, as consumers,
trust that these standards are followed.
Of course, there are instances where these standards are not followed
and trust is lost. And once that trust
is lost, the companies lose their customer base.
Mr. Handy, also states that the purpose of a business “…is
not to make a profit…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.”
But what is the better? Just a
better mousetrap? The rest of his
article suggests something even more than a better mousetrap, but a better world. He speaks of democraticizing companies so all
have a vote in the progress of the company, sustainability – environmental and
social, and taking care of the consumer.
I’m trying to wrap my mind around some of the concepts he put
forward. This article was written over
13 years ago. I’m not sure who primarily
reads the Harvard Business Review (not me, though I have appreciated the few
articles I’ve been given in my class), but I would assume it is those who are
the movers and shakers in any industry.
I’m not seeing that many have taken into consideration his advice (or it’s
slow moving). But, as an aspiring
entrepreneur is shouldn’t matter to me if I see others following his
suggestions or not. What am I going to
do with the suggestions?
After reading this, I’ve considered how I would let others I
“employ” have a vote in the progress of the company. I don’t have an answer yet, but it has given
me food for thought. Would I purposely
keep my business small to avoid to many votes?
I don’t know. Sustainability, at
least environmental sustainability, is visible in the business world – from “green”
companies to those who do sincerely watch their “carbon footprint”. I have also considered how I will maintain
integrity in my earthly stewardship with my business ventures. The social sustainability is a new concept to
me, though I have considered what I would give my “employees” if I should
employ any. This will be a process to be
reviewed. Taking care of the consumer is
also receiving headlines these days.
Some companies are exploring many different avenues to help take care of
their consumers WITHOUT it being legislated.
That is noteworthy. I haven’t yet
decided how I’m going to take care of my consumers, though it is a consideration
in my game plan.
Mr. Hardy hints that some of this needs to be legislated
though he notes that the laws often lag behind the actual need. I hope they don’t need to be legislated
because then it becomes a form of resentment rather than a true change of heart. I would rather be educated and allow to make
my own changes than be told what I have to do.
Another concept we were asked to consider in class was from
a speech given by Elder Gay entitled, “Entrepreneurship and Consecration.” Elder Gay states a similar reason for
business that we are to help ourselves to serve others. That is my hope that I will have a business
that will help me and my family as well as help others have a better live
whether through the product itself or through how I choose to run my business.
