Based on what you read in the first two pages (pages 3 and 4), why are virtue and integrity so vital to an economy?
Virtue and integrity are vital because without them, capital and talent flee. Without capital and talent, innovation stops, investments stop, and prices plunder. As a result, businesses and the economy collapse.
Nobody wants to be part of an organization or system you can not trust. Nobody likes to feel cheated on. It is as simple as that.
According to Charles Handy, what is the “real justification” for the existence of businesses?
For him, the real justification of business is that the business can do something more or better with the profits earned.
In other words, a business exists to serve society and improve lives and uses its resources to continue that pursuit.
What are two solutions proposed by Handy that you agree with? Why?
I agree with him that an update in regulations is needed. More than twenty years have passed since Handy wrote this document, and we still face some problems with the regulatory entities. Partly, that is because technology has developed outrageously, but mainly because regulators focus on getting their piece of the cake rather than protecting the common well-being. When the one who makes the rules can not be trusted, it is logical that nothing changes.
I also agree with him about giving workers a say in the company. As someone who has seen some unethical behavior from employers, I think listening to the ones who have direct contact with the clients is crucial. Many small decisions made in an office under the motto of being more profitable can harm the business in the long term. Employes’ feedback will eventually lead to a company reshaping the industry because, if one company offers a better service than its competition, other companies will need to adopt healthy habits to keep up.