I’ve been watching the Occupy Wall Street demonstration and other protests around the world over the last few weeks with a sense of excitement.  Not because I dislike capitalism. I actually think capitalism works and can be very beneficial for communities and society – just look at the micro loan successes in developing nations.  Nor am I excited because I like to watch a good heated disagreement, which, let’s face it, everyone does!

I’m excited because I see the beginning of a brave new business world that I believe we desperately need.

As far as I can tell there are some businesses that aren’t really businesses at all.  They don’t do much good and they add very little value to their customers.  They’re not contributing to society in any way.  Quite frankly they’re nothing more than “personal welfare states”, whose sole focus is to make money for the owners or shareholders.  The transaction goes something like this:

“I need some money to fund my unencumbered lifestyle, so I’ll see what I can sell at the highest price for the smallest cost (and effort), maximising my income.  I’m not worried about the on going consequences, unless it directly affects my ability to repeat the transaction!”

That way of doing business is what drives people to protest and occupy Wall Street . It’s what drives us a little insane when we call up organisations and get an automated system followed by someone with a long script who doesn’t care. It’s what makes programmes like Rogue Traders and Watchdog necessary. It’s what causes people to question all business and believe all large organisations are selfish and evil.

But what if businesses behaved more like charities?

I’m not suggesting that businesses should be funded by benevolent donations or provide their goods and services for free.  However, apart from being funded in a different way, I shouldn’t be able to tell the difference between a business and a charity.

The thing about a charity is that it tends to have a very inspiring and focused mission that has very little to do with making money and reaches beyond it’s own existence.  A charity exists to provide a solution to a problem for the common good, but far too often in business, the mission is to increase the turnover and net profit!

What if businesses chose to operate with an equally inspiring mission.  A mission defined by a great solution they want to offer, along side a set of values that define how they intend to behave.  Everything else that the business does can then be measured against these mission and values.

Don’t get me wrong.  I think businesses should make money.  In fact, businesses that don’t make money won’t last very long.   I don’t have a problem with businesses making  money.  Nor do I have an issue with people being paid well for working hard to build a great business; or shareholders making a return for taking a risk and investing in a growing business.  It makes good businesses sense to make money and to pay your talented staff and trusting investors well.

What concerns me are organisations with a mission to maximise profit that supersedes all other considerations.

Businesses should not have as a mission “to make as much money as possible!”   That’s pure greed! And greed is what turns capitalism bad!  It’s what causes the sub prime mortgage collapse. It’s what drives Bernie Madoff to steal.  It’s what causes thousands of job losses at Enron.   Greed is NOT Good, Mr Gekko!

Instead, let’s build businesses with laudable missions and values that we’re not afraid to express to our customers.  Let’s build businesses that are about more than just money.  After all, Jim Collins’ has shown us in his books ‘Good To Great’ and ‘Built to Last’ that those organisation built on a strong mission and values tend to make more money too!

Posted on Monday, October 17th, 2011 at 6:08 pm
Categories: Front Page, Leadership, Org Culture.

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