Over the last couple of months, I have been involved in several discussion on morality, ethics, business owners, and greed. They have been very interesting and entertaining for the most part. The part that has shocked me is the level of distrust that many people have for entrepreneurs and business owners. It may that every time we turn on the news, we are bombarded with news flashes of company misdeeds, or corruption, embezzlement, a complete lack of morality, and a complete focus on greed.

I would like to state very clearly for the record that being a long term successful business owner demands that we behave morally. I believe this not because of my religious beliefs though the principles taught in the Bible lay this foundation. I believe this because economics teaches the morality of capitalism. Now before you start to shake your head and disagree with me take a deep breath and let me walk you through it.

If you want a more indepth study of the morality of capitalism you should check out the Austrian School of Economics. It doesn’t get a lot of play in the news but does contain a great deal of value. If economics isn’t your cup of tea, let me tell you a simple story.

Bill and Steve live in a small town. Bill works are the local manufacturing plant while Steve owns the local bakery. When Steve acts in a moral manner, he provides value to Bill with his baked goods. Bill continues to purchase from Steve and he profits. If Steve decides to behave immorally and start using inferior ingredients, cutting portion sizes, etc. the dynamics change. Bill no longer sees value in what Steve is providing. He goes to another bakery or does without. Steve soon goes out of business.

Bill also has a moral obligation to his employer. He acts morally when he does the job he has been hired to do in the best manner he knows how. If Bill decides to behave immorally by taking longer breaks, doing substandard work, etc, he eventually suffers the consequences by being terminated. Regardless of your religious beliefs, economics is built on morality.

I know some people will say that is too simple an explanation. I could walk through all the research on it, but to be honest it makes my head hurt looking at the research papers. But back to the issue of business owners and entrepreneurs. Are we driven by greed as some would say or do our actions say something different?

Perry Marshall wrote a very insightful article in the last couple of days. I wish I had written it. He is a very talented writer if you aren’t familiar with him and a business owner. It won’t take long to read but may shock you with news about entrepreneurs that you didn’t know. How we act with our hard earned money says much about what drives us as business owners. Do me a favor and yourself and read Entrepreneurs. I may change your outlook on business owners.

PS I am joining the Business Coaching team at Simpleology.com. If you haven’t already signed up for a free Simpleology account Get One Now The coaching program is closed right now but I have heard rumors it will be opening again.

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Tagged as: business owner, ethics, small business