Business and Profit

• Although there are challenges from right and

left to business, today profit is viewed as
potentially a contribution to the public good
by providing the basis for job creation,
economic growth , and technological
innovation.
• Now the question is: what kind of behavior is
the best support to a company's profitability?
• Tom Peters and Waterman, in their book In
Search for Excellence, say that profit could be
increased by ensuring the quality and service.
• Examples include Ben and Jerry’s homemade
ice-cream parlor (see page 57 of Stewart’s
book).
• Individual and Organization:
:Aristotle’s emphasis on ‘friendship’ has business correlation.
:Business includes loyal customers, faithful stockholders, and
dedicated workers.
: Success of Japanese manufacturing has been attributed to its
practice of cultivating networks of suppliers and distributers who are
called Keiretsu.
In such relationships, manufacturers and suppliers cooperate to
produce the best product at the lowest cost.
Lester Thurow asserts that the keiretsu suppliers are the best suppliers.
This practice is supportive of the practices of communitarian form of
capitalism. Thurow labels it communitarian capitalism. Japan and
Germany possess this type of value.
.
Contrariwise Thurow states that USA and UK trumpet individual
values ( e.g., the brilliant entrepreneur, large wage
differentials, hostile mergers and takeover). Thurow labels it
individualistic capitalism.
David Stewart says that it is not easy to answer which capitalism
is better. For him history will tell us which theory is right.
But here the point is that both in Aristotle’s ethics and
communitarian form of capitalism , individuals find meaning in
being part of a larger whole.
• The role of moderation:
• Aristotelolian theme: moderation means seeking the mean between
extremes( such as, between individualistic and communitarian capitalism).
• Moral development:
• Although Aristotle was convinced that people develop their moral
character over time, he did not describe how this happens. Harvard
psychologists Lawrence Kohlberg seems to provide a guideline principle in
this regard. He centered his research on describing the stages of moral
development through which individuals pass as they mature in their moral
judgment. They are as follows:
• The Preconvention level
• The conventional level
• Post conventional level.
: The preconvention level is the one of
punishment and reward.
: the conventional level is one in which we seek
the approval of others and submit to authority.
: The postconventional level is the highest level
of moral development in which people seek
the general welfare and act according to
universal moral principle.