Virtue and integrity are vital to an economy because the laws that the markets are governed by depend on these virtues. If they do not stay intact, then the entire structure of the market will become so unreliable that no one will trust the system. If this happens the markets will empty. We are getting dangerously close to this scenario. The main reason for our increasing distrust is because business leaders are putting enormous amounts of priority into the shareholder value. Playing the game with these new rules motivates companies to make decisions that center around a company's share price. These decisions could increase profits like cutting expenditures, but at what price!? We are seeing that businesses are putting more value in taking care of itself before caring for others. Now is where virtue and integrity need to insert themselves onto the scene if we want to prevent a deteriorating market. We are seeing a surge in this somewhat within the last couple of years with companies that give back in some way. They are seeing that we, as consumers, want to purchase something not only for our own well being but also to meet a greater need.
According to Charles Handy, the real justification for the existence of business is not just to make a profit. Instead of stopping there, the real reason for a business is to use that profit to do or make something better.
I appreciated the point that Charles made about how the employees of a company are treated like second hand citizens. They are treated as costs, not assets and this needs to be changed. There should be laws put into place that gives the members of a company certain rights like the right to vote or express their views. The serious power is held by outsiders which needs to change.
I also agree with the argument he made about how companies need to be held accountable. They should be leaving the world in a better place than they found it. They should have legal requirements that make them protect the environment and community relations and ethics. More priority should be put on humanity as a whole instead of the choice few at the top.
According to Charles Handy, the real justification for the existence of business is not just to make a profit. Instead of stopping there, the real reason for a business is to use that profit to do or make something better.
I appreciated the point that Charles made about how the employees of a company are treated like second hand citizens. They are treated as costs, not assets and this needs to be changed. There should be laws put into place that gives the members of a company certain rights like the right to vote or express their views. The serious power is held by outsiders which needs to change.
I also agree with the argument he made about how companies need to be held accountable. They should be leaving the world in a better place than they found it. They should have legal requirements that make them protect the environment and community relations and ethics. More priority should be put on humanity as a whole instead of the choice few at the top.
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