What's a Business For?

According to Charles Handy in his book What’s a Business for? He highlights the importance of virtue and integrity as a vital means for an economy. Since businesses operate within a society and depend on trust and cooperation to function effectively, it is here that virtue and integrity are crucial in creating and maintaining this trust. When companies act with honesty, fairness and ethical behavior, they create an environment that fosters trust among stakeholders, be they customers, employees, and the community at large. This trust, in turn, facilitates long-term relationships, collaboration and overall economic growth.

The "real justification," as Handy puts it, for the existence of companies is not only generating profit, but also the creation of value for the society. Beyond generating wealth, companies must help contribute positively to society, whether by providing goods and services that can meet people's needs, create employment opportunities, or take into account the impact their operations may have on the environment.

In the end, the virtue and integrity that Charles Handy speaks of are vital and necessary in the business world, as they are what generate trust and cooperation. And when a company omits these qualities, is when failure begins.

The two proposals that I agree with are.

The need for businesses to adopt a stakeholder approach: Handy's proposal deepens the need to have a broader vision, where not only the needs of shareholders are prioritized, but also the needs of customers, employees, suppliers, and the environment are considered.

Embracing the concept of corporate social responsibility: The importance of companies taking responsibility for their impact on society and the environment, and that they can go beyond what the law has to dictate. In the end, we all live and share the same place, so I think it would be ideal that companies can contribute in some way to improve the place where they operate.