I was once told that the purpose of a business is to make money. I don't believe that any more. Now I believe that the purpose of a business to to make its employees happy.
It is pretty much a necessary condition, then, that you do make money, but making money does not, of itself, make your employees happy.
I'd rather have a company that makes its employees happy, and makes money becuase it's a necessary condition, rather than to have, purely as my business goal, to make money.
Management similarly. People think the role of management is to get people to do work. It isn't. It's to make people happy. If you do so without them doing any work then it won't last, so getting them to do work is necessary, but that's not the true goal.
(Note: I don't actually believe the extreme position as stated, but it is the mindset I strive for and occasionally achieve.)
If that's true that the purpose of a business is to make its employees happy, then my employer is an abject failure. I don't think I've ever heard one of my co-workers say they like their job.
On the other hand, the company does make money hand-over-fist though, so I don't expect anything to change anytime soon. Sigh.....
I think that the purpose of a business should primarily be to help people and do good, and secondarily charge only what they reasonably need to ensure their continued operation in the long term. (I guess that is "make what people want" and "create wealth" in pglese.)
Conversely, it seems to me currently that businesses are here primarily to make money, and then secondarily help people and do good only up to the extent that reasonably ensures their right to continue charging -- often more and more -- money.
Note: I don't mean the business owner shouldn't prosper nor should pay as low salaries as he can. Quite to the contrary, actually. But making money is the wrong baseline reason to run a business. If people, including the business owner, can afford to not have everything, to not rip as much as to themselves that they possibly can, there will be plenty for everyone.
If the business is just to make money, it doesn't give out more to the community than merely what it takes back from them. The business will run in an endless fear of not making enough money and not having enough, and that will inevitably govern all its activities. That is missing the creation part of creating wealth.
Conversely, it seems to me currently that businesses are here primarily to make money
A corporation is a machine for making money. The corporation doesn't "own" the money - the owners of the company do. Similarly the corporation doesn't "want" to do anything with the money - the owners (who may also be the employees) of the company have wants, as they're not machines, they're people!
Unix philosophy says "a tool should do one thing well". Well a corporation is a tool that takes raw materials on STDIN and emits money on STDOUT and you pipe that to whatever you want, be that a roof over your own head, or vaccinating the entire population of a third world country.
I think this vision is overly romantic. I would say the Purpose is to make money. And if making employees happy is a way to achieve it, then they'll do it.
I don't think employee happiness always necessarily equals more productivity. may be true in creative work.
It is pretty much a necessary condition, then, that you do make money, but making money does not, of itself, make your employees happy.
I'd rather have a company that makes its employees happy, and makes money becuase it's a necessary condition, rather than to have, purely as my business goal, to make money.
Management similarly. People think the role of management is to get people to do work. It isn't. It's to make people happy. If you do so without them doing any work then it won't last, so getting them to do work is necessary, but that's not the true goal.
(Note: I don't actually believe the extreme position as stated, but it is the mindset I strive for and occasionally achieve.)