What’s a Business For?

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How To Develop Your Skill For Great Success And Happiness Including Become CPA? | Additional special tips From Admin

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What’s a Business For?

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Publication Date:
December 01, 2002

In the wake of the recent corporate scandals, it’s time to reconsider the assumptions underlying American-style stock-market capitalism. That heady doctrine–in which the market is king, success is measured in terms of shareholder value, and profits are an end in themselves–enraptured America for a generation, spread to Britain during the 1980s, and recently began to gain acceptance in Continental Europe. But now, many wonder whether the American model is corrupt. The American scandals are not just a matter of dubious personal ethics or of rogue companies fudging the odd billion. And the cure for the problems will not come solely from tougher regulations. We must also ask more fundamental questions: Whom and what is a business for? And are traditional ownership and governance structures suited to the knowledge economy? According to corporate law, a company’s financiers are its owners, and employees are treated as property and recorded as costs. But whereas that might have been true in the early days of industry, it does not reflect today’s reality. Now a company’s assets are increasingly found in the employees who contribute their time and talents rather than in the stockholders who temporarily contribute their money. The language and measures of business must be reversed. In a knowledge economy, a good business is a community with a purpose, not a piece of property.

Copyright © 2020 Harvard Business School Publishing. All rights reserved. Harvard Business Publishing is an affiliate of Harvard Business School.

What’s a Business For?

Research & References of What’s a Business For?|A&C Accounting And Tax Services
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