So much so is this the case that financial analysts, who are the counterpart of employment placement centers, are sometimes called upon for assistance to make the move easier. Management is passing into the hands of professional managers; likewise financial investment is passing to an increasing degree into the hands of professional investors, and a professional investor must find an outlet for his investment.
An employee invests his capacity and ability in a company. he also has his expectations, which include a fair return for the work that he does, as well as a contintually developing career. Once again, he may elect at some time to receive lower wages in order to acquire growth over the long term. He, like the investor in shares, is capable of moving his commitment. This movement may be made by changing jobs, but it also may be made by reducing his commitment to the work that he is required to do and increasing his commitment to some activity outside the company, such as service clubs, further study, local politics, and so on. Much of the work that is done in a company, particularly at the higher levels, requires fairly intense and continuous commitment. Without this, little can be accomplished. Unless the employee sees some satisfaction in what he is doing, this intense application and commitment will not be made. Yet it is out of just this application and commitment that the company grows in such a way that it is able to satisfy the needs of the shareholder.
If, therefore, we are to say that a company is in business to make a profit for the shareholder’s because otherwise the shareholders will withdraw their support and therefore cause the company to decline, we should likewise say that a company is in business for the well-being of the employees, and unless this need is met the employees will withdraw their commitment and the company will decline.
However, a third force must be reckoned with–that of the market. The market represents the need that society has for the continued existence of the company. The expectations of the market are for a quality product at a price that is reasonable.
March 18th, 2020 ~ If there is ever a time to see that profit is not the main goal of a business, it is now. Given the world situation with the Corona Virus or Covid-19, where the stock market has lost 1/3 of its value in 10 days or so, countless businesses won’t survive. This is not unusual as most businesses fail. But this is dramatic and swift. Very few of us could see this coming. And talk about out of one’s control. So, no, the main goal is not to make money, or to serve one of the three triad entities: Shareholders, Employees and Market. It is to become whole. All entities to become whole. You can still strive to become whole even if the business is failing.