The Purpose of Business

Virtue and integrity are vital to a strong economy because integrity enables trust. Consumers are more likely to trust companies that deliver on their promises. When companies do not deliver on their promises, trust erodes and consumers no longer want to engage with companies. 

In What's a Business For, writer Charles Handy states that the "real justification" for business is to make a profit so the business can achieve greater goals than just making a profit. Businesses should have a greater purpose in mind.  Charles Handy proposed solutions to help business serve a higher purpose and avoid current pitfalls. 

One solution is for business leaders to take the same Hippocratic oath as many doctors. This oath includes the admonition to do no harm. If businesses take this oath seriously, they will be concerned for more than just profits. They will set high standards for themselves in regard to their impact on the environment. They will consider the lives of their employees and customers. I think this is a great solution because it forces businesses to look beyond themselves and remember their global responsibilities.

Another solution is for businesses to align themselves with a higher cause they believe in. A great example of this is a company I recently learned about, Sitka Gear. They make technical outdoor clothing for hunters and photographers. Their clothing is high quality and their customer service is exceptional. What's even greater is their commitment to give back by donating 2% of their revenue to conservation efforts. This is a great solution as well because it engenders trust between the business and consumers. Consumers know they can trust a company that takes steps to make a positive impact in the world.