Becoming A Change Maker

In recent years, the fragility of capitalism has become increasingly evident. In light of corporate scandals, it is clear that truth and trust are crucial to the functioning of markets. Accounting manipulations and greed-driven leadership have eroded public confidence in businesses. 

Many executives have prioritized personal financial gain over long-term growth and societal interests. The rise of stock options and excessive executive compensation has only fueled the public's distrust. 

While American-style capitalism once inspired global admiration, its flaws are now unmistakable. Europeans are rightfully concerned that these issues could spread to their own markets, threatening welfare and infrastructure. If trust continues to erode, there is a real danger that people may abandon markets altogether, leading to a greater reliance on governments for wealth creation—historically an ineffective solution. 

Charles Handy wisely noted, “The purpose of a business is not to make a profit. It is to make a profit so that the business can do something more or better. That ‘something’ becomes the real justification for the business.” 

Trust is fragile; once broken, the impact is lasting. Businesses that prioritize their own interests over those of their stakeholders only contribute to this growing distrust. We must acknowledge that there are significant flaws within capitalism when it comes to personal ethics and transparency. It appears that many executives are no longer leading their companies for the collective good but rather for their own selfish gains. 

As Keynes astutely observed, “Capitalism is the astounding belief that the most wicked men will do the most wicked things for the greatest good for everyone.” 

Our world is plagued by personal greed and indifference, with too many individuals engaging in deliberate fraud for personal gain. We must establish a new vision for the purpose of business.  While it’s true that businesses cannot always afford to be generous, doing good does not inherently conflict with achieving reasonable profits. Businesses can, for example, make money by serving the poor as well as the rich.  

Like charitable organizations, we should measure our success by the positive outcomes we create for others as well as for ourselves, and associate with a cause in order to give purpose to our lives.