Based on what you read in the first two pages
(pages 3 and 4), why are virtue and integrity so vital to an economy?
Virtue and integrity is extremely vital
to the economy; without it no one would trust anyone to do business with. Even
the perception of dishonestly will spook the markets and cause great losses
because the markets are sensitive to perceptions. One once the markets loose
trust it is hard to regain it. This is because behind the markets are people
that have emotions, fearing that they stand to lose.
According to Charles Handy, what is the “real
justification” for the existence of businesses?
The real justification for business is
not profit, it is to make a profit so that that profit can do something more or
better. Making profit is a means to an end.
What are two solutions proposed by Handy that
you agree with? Why?
The first solution proposed was that
business needs to be more honest. The financial reporting done by companies
should be a real reflection of what is going on. Too often corporates influence
the perception of their business in order to fool the public in order to
benefit unduly. These practices erode trust and suppresses the economy.
The second solution is that companies
should have a deeper purpose than just making money. Through their success they
should seek to make the world a better place. By seeking to uplift others,
society will benefit and the man in the street will be able to have a higher
standard of living.
I agree with the first solution and
the second as long is the side effect would not be detrimental to a free market
economy. We would not want entrepreneurs to lose their drive asking, what is
the point of working harder and finding ways so do things better if we are
simply to give it away.
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