The Role of Business in Society: A Mutual Beneficial Arrangement

Let me share a story. A true story.

In my previous role, I managed media and drafted speeches for one of the largest resource companies. As part of their annual business review, a Financial Times journalist conducted an interview at the CEO's club over lunch. The resource industry is cyclical, and at that time, the company had just laid off 3,000 workers—a 10% reduction in its global workforce. This came shortly before Christmas and led to harsh criticism from both the local community and the union. We sat down for the interview, and the reporter began his session, saying, "These are tough times for everybody right now."

The CEO replied, "Never seen times like this. My wife told me that the price of smoked salmon has gone through the roof. Ridiculous..."

This true story highlights a critical aspect of the business-academia divide. Society is often seen as an abstract concept, while individuals are tangible entities. Businesses, on the other hand, are organized groups of people working towards serving other people—improving their lives in exchange for payment, creating a mutually beneficial relationship.

Businesses: An Organized Effort to Better Society

Businesses serve humanity by providing goods and services that enhance individuals' lives. For example, businesses like Quora produce platforms that help people contribute knowledge, fostering a community that aids in education and information sharing. Businesses are crucial in providing paid employment, enabling people to sustain their livelihoods.

The Importance of Business Acumen and Finance

Many people lack the business acumen or financial resources to launch a business. Therefore, they heavily rely on businesses to offer stable employment, which supports their survival. Moreover, the profits generated by businesses are often taxed, funds that are then redirected towards various social and business developments, including healthcare, education, and infrastructure.

The Economic Growth through Business

Businesses provide the society with a platform for growth and prosperity. They give individuals a pathway to economic independence and the opportunity to contribute positively to their communities. When businesses grow, the economy thrives, leading to increased wealth and better societal outcomes. However, the presence of monopolies and a lack of competition can pose significant challenges. For instance, economies might struggle if a company like Amazon monopolizes a significant market share, eliminating competition and hindering further advancements and innovations.

Preventing Monopolies: A Legacy of Competitive Markets

Historically, the U.S. has broken up large monopolies to ensure a competitive market, as seen with the breakup of ATT and IBM. The relevance of this legacy is not lost today. Monopolies can stifle innovation and limit opportunities for other businesses, ultimately harming the economic and social fabric of society.

In conclusion, businesses play a vital role in society by providing employment, driving economic growth, and fostering social development. It is essential to maintain a competitive market environment to ensure that businesses continue to serve the broader societal goals effectively.