Ask the average person why a business exists (purpose) and the typical response is, "To make money or a profit." That is a truthful, but incomplete and narrow view based solely on the economist’s perspective. Economics is but one science or discipline of study touching business and touched by business. Unfortunately, this popular viewpoint often casts business in a negative manner – seeing the glass half empty. In fact, business is so much more.
Business is also an institution of society and plays a specific role of service, continuity, scale, and sustainability. It is through the profit motive that prices actually fall, not rise, and standards of products and services rise. Business people seek competitive advantage most often on these two fronts. Who wins? It is the buyer in the marketplace who wins.
Business is also a free enterprise phenomenon so one must also see it in context of government. Absent a free market economy supported by a government, the role of business is owned by the ruling power, be it communism or monarchy. I’m proud to be a capitalist because I understand that capitalism and a free society are interdependent.
Very simply, a business is an integration of economic, social, and political realities to name but three of the core disciplines at work.
As a huge advocate of the nobility and
creativity of business, let’s embrace a robust understanding of
business rather than a one dimensional economic view only. The On-Purpose Business perspective says a business exists to serve in both a social and economic role within the context of a government freeing individual pursuits with a system of checks and balances.
Here is a rather heady discussion from a You Tube video on the "nobility of business"
from the World Economic Forum. It is nearly an hour long and has a rich panel discussion. Enjoy!
Please feel free to comment.