BUSINESS IS TO MAKE MONEY.
Right?
Well, I was honored to be a member of a panel discussion this week with Amy Ross about Conscious Capitalism. The question came up: What is the purpose of business, if not to make money?
Because that seems to be the universal assumption of our economy and culture.
The fact is that if you’ve focused everything on making money, you’ll only be addressing the needs of one class of stakeholder: The shareholders.
Don’t get me wrong, money is vital. But as the way of being able to continue what you’re doing.
Think about this instead: What’s the purpose of a family?
I hope you see that money is necessary for a thriving family, but is far from its purpose. A family is about love, support, raising the next generation of society. Stuff like that.
Or: What’s the purpose of a charity which, say, is about feeding kids from needy households?
Again, money is necessary, otherwise you won’t be able to continue the mission of this organization. But the charity’s purpose is to feed kids, to benefit society, and to support people in need.
When you think about it, we’re limiting the value of a business by declaring that generating money is its primary purpose.
I’ve talked about Conscious Capitalism before. It’s a powerful force for businesses which are attempting to change the world for the better. And, by the way, they end up being more profitable too. Because great employees like working there. Because customers and partners like working with them.
So check out the video of this panel discussion!
The Values-Based Business 
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December 30, 2015 at 3:17 pm
Jim Haselmaier
Dave Packard had a very thoughtful response when asked why the company listed Profit as the number one objective and other objectives (providing long term employment, making a technical contribution, being a good member of the community, etc.) were of lower priority. “If we don’t make a profit we go out of business – and then we won’t be able to deliver on the other objectives we have.”
December 30, 2015 at 4:36 pm
Carl Dierschow
I remember that story as well. It’s a powerful way to put money in the right perspective.
November 2, 2016 at 11:26 am
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