What is Good Business?

Summary

The transcript discusses the unpopularity of business and capitalism, advocating for a shift towards a more humane and profitable business culture. It emphasizes the importance of distinguishing between true needs and mere desires, and calls for businesses to focus on satisfying genuine needs rather than exploiting desires. The script also highlights the significance of meaningful work, just pricing, and the moral responsibility of businesses to contribute positively to society, suggesting that commerce can play a role in fulfilling higher human needs beyond basic necessities.

Takeaways

• 😟 Capitalism and business are currently facing a crisis of reputation due to a perceived misalignment with collective interests.
• 🤔 The challenge is not to eliminate business but to evolve towards a more ethical and beneficial model that aligns with human needs.
• 🚫 Traditional capitalism is critiqued for profiting from both genuine needs and mere desires without distinguishing between the two.
• 💡 Good businesses should focus on satisfying true needs rather than exploiting desires, even if it means less profit.
• 💰 The pursuit of profit should not overshadow the importance of creating products and services that are both appealing and beneficial.
• 🌟 Meaningful work is essential, where employees feel they contribute positively to society, which can reduce the emphasis on monetary rewards.
• 🏆 Society should honor and respect businesses that prioritize noble causes over profit maximization, aligning success with ethical conduct.
• 💼 Employees should be rewarded with a sense of purpose and meaning, not just financial compensation.
• 💵 The concept of 'just prices' is introduced, advocating for prices that reflect the true costs of production, including environmental and social impacts.
• 🌍 A more ethical business model should consider the broader impact on society, aiming to meet higher needs beyond basic necessities.
• 🛠️ There is a call for a shift in business focus towards fulfilling deeper human needs, such as emotional well-being and personal growth.

Q & A

Why is capitalism currently in disrepute according to the transcript?

Capitalism is in disrepute because its current structure is seen as not properly serving collective interests and exploiting people's inability to distinguish between their needs and desires.

What is the main challenge presented in the script for the future of business?

The main challenge is not to eliminate business but to evolve towards a better version that is decent, humane, and profitable.

What is the distinction the script suggests we are not good at identifying?

The distinction between what is genuinely good and important for our flourishing and what we merely desire but isn't connected to anything sincere or worthwhile.

How does the script define 'good businesses'?

Good businesses are defined by not only their profitability but also by what they make their profit from, specifically by satisfying true needs rather than exploiting desires.

What is the difficulty in running a business that satisfies needs rather than desires according to the transcript?

It's harder because the business must solve the problem of making things that are both appealing and good, which requires mastering both seduction and goodness, a combination few have achieved.

What does the script suggest as the ultimate goal for businesses in terms of their offerings?

The ultimate goal is to fuse goodness and seduction in their offerings, making goodness deeply appealing and not just its own reward.

What is the script's view on the relationship between meaningful work and financial compensation?

The script suggests that the more meaningful a job is, the less money matters, as people are willing to work for lower salaries if they feel they are contributing positively to the world.

What is the script's perspective on the current distribution of status and respect in society?

The current distribution of status and respect is flawed because it rewards wealth without questioning how it was accumulated, often overlooking the moral implications of business practices.

Why does the script argue that a focus on just prices is important?

Focusing on just prices is important because it ensures that the true costs of production are factored in, preventing businesses from offloading costs onto others or the environment.

What is the script's stance on the role of commerce in fulfilling higher needs?

The script argues that commerce has the potential to help fulfill higher needs such as love, self-esteem, and creativity, but this aspect is often overlooked.

What does the script propose as the ideal distribution of business activity?

Ideally, 80% of business should come from the top 20% of our needs, focusing on higher-level fulfillment rather than just the basic needs.

Outlines

00:00

💼 The Need for a Better Business Culture

The paragraph discusses the unpopularity of business and capitalism, suggesting that the challenge is not to eliminate business but to evolve towards a better version. It emphasizes the distinction between genuine human needs and mere desires, arguing that businesses should focus on satisfying true needs rather than exploiting desires. The text suggests that capitalism becomes problematic when it exploits our inability to differentiate between needs and desires. It also points out the difficulty in making businesses profitable by focusing on needs over desires, as the market often rewards businesses that cater to desires more readily. The paragraph concludes by stating that the goal should be to create businesses that are not only profitable but also contribute positively to society by satisfying real needs and providing meaningful work.

05:00

🌍 Redefining Success in Business and Society

This paragraph continues the discussion on the role of business in society, focusing on the idea that businesses should be measured not only by their profitability but also by the social and environmental impacts of their operations. It argues for the concept of 'just prices' that reflect the true costs of production, including externalities like pollution and worker health. The text suggests that a more ethical society would honor and respect businesses that prioritize meaning, kindness, and goodness over mere profit. It also challenges the current focus of capitalism on basic needs, proposing that businesses should aim to fulfill higher needs such as love, self-esteem, and creativity. The paragraph ends by emphasizing the potential for business to contribute to broader societal goals, such as building beautiful cities and fostering wise, kind, and self-possessed societies.

Keywords

💡Capitalism

Capitalism is an economic system based on private ownership of the means of production and the creation of goods and services for profit. In the video, it is discussed as being in disrepute due to its association with businesses that exploit consumer desires rather than fulfilling genuine needs, highlighting the need for a more ethical and humane approach to business within a capitalist framework.

💡Collective Interests

Collective interests refer to the common goals, needs, and benefits shared by a group or society as a whole. The script emphasizes that businesses should serve these interests, suggesting that the current structure of businesses often fails to do so, leading to a call for reform towards businesses that contribute positively to society.

💡Needs vs. Desires

The distinction between needs and desires is central to the video's message. 'Needs' are essential for human survival and well-being, while 'desires' are wants that are not necessarily required. The script criticizes capitalism for exploiting desires over needs, advocating for businesses that prioritize fulfilling actual needs for the betterment of society.

💡Seduction

In the context of the video, 'seduction' refers to the tactics used by businesses to entice consumers into buying products that they desire but do not necessarily need. The script points out that many businesses have mastered seduction, leading to the erosion of consumers' willpower and the promotion of unhealthy desires.

💡Goodness

Goodness, in the video, is associated with the ethical and moral aspects of business practices. It is contrasted with seduction, where businesses that embody goodness prioritize the well-being of consumers and society over profit. The challenge is to combine goodness with seduction to create businesses that are both appealing and beneficial.

💡Meaningful Work

Meaningful work is defined as any occupation that contributes to reducing suffering or increasing the fulfillment of others, thereby making the world a better place. The video argues that businesses should provide their employees with meaningful work, which can be a form of compensation beyond monetary rewards.

💡Status and Respect

Status and respect are discussed in the video as societal rewards that are often associated with wealth accumulation. The script suggests that society should reevaluate how it bestows honor, directing it towards those who run their businesses ethically and contribute positively to society, rather than just those who are wealthy.

💡Just Price

A 'just price' is the cost of a product or service that includes all the true costs of production without externalizing harm to the environment or society. The video criticizes the current practice where prices often do not reflect these costs, leading to unfair advantages and hidden social and environmental costs.

💡Maslow's Hierarchy of Needs

Maslow's Hierarchy of Needs is a psychological theory that prioritizes human needs from basic physiological needs to higher-level needs like self-esteem and self-actualization. The video points out that current business practices are largely focused on the lower, basic needs, and there is a need to shift towards fulfilling higher-level needs through commerce.

💡Moral Capitalism

Moral capitalism is the concept of businesses operating with a sense of ethics and responsibility towards society, prioritizing the well-being of consumers and the environment over profit maximization. The video calls for a shift towards moral capitalism, where businesses are rewarded for creating meaningful, ethical, and sustainable practices.

💡Fulfillment

Fulfillment, in the context of the video, refers to the state of being satisfied and realizing one's potential. The script suggests that businesses should aim to contribute to the fulfillment of individuals and society, rather than just focusing on profit, by addressing higher-level needs and creating a more meaningful and ethical business culture.

Highlights

Business and capitalism are currently facing a crisis of reputation due to a perceived misalignment with collective interests.

The challenge is not to eliminate business but to evolve towards a more humane and profitable business model.

A distinction must be made between genuine human needs and mere desires to avoid exploitative practices by businesses.

Capitalism is criticized for profiting from both needs and desires without ethical consideration.

Good businesses should be defined by the ethical nature of their profits, not just profitability.

It's more challenging to run a business that satisfies needs rather than desires due to the difficulty of balancing appeal and goodness.

The pursuit of seduction and goodness in business is rare but necessary for a meaningful and ethical capitalism.

Meaningful work is defined by its contribution to reducing suffering or increasing fulfillment for others.

Meaningful jobs can diminish the importance of monetary rewards as motivation.

The current distribution of status and respect often rewards unethical wealth accumulation.

Society should reform to honor those who run businesses in noble ways, prioritizing needs over desires.

The concept of a 'just price' in business is essential, factoring in the true costs of production without externalizing harm.

A moral society should focus on the path a product takes, ensuring it respects all involved, including the environment.

Commerce should be directed more towards fulfilling higher needs beyond basic necessities.

The potential of business to contribute to societal goals such as wisdom, kindness, and self-possession is largely untapped.

The current disillusionment with capitalism is due to its failure to meet its potential for ethical and meaningful business practices.

The response to the shortcomings of business should be improvement, not the elimination of business itself.

Transcripts

business has rarely been so unpopular

capitalism is in serious disrepute a lot

of people are convinced that businesses

as their structure today simply don't

properly serve our best collective

interests yet a world without business

scarcely seems realistic the challenge

isn't to do away with business its to

feel our way towards a better version

here are five things we think are

necessary for decent humane and

profitable business culture as human

beings there are things we need and that

are genuinely good and important for our

flourishing and then there are things we

merely desire that appeal to our

appetites but aren't connected up with

anything sincere or worthwhile the

problem is we aren't good at identifying

and holding on to the distinction we're

not very good at knowing what's really

good for us this has created a great

temptation for capitalism for the

standard capitalist it doesn't matter

much what you make your money from it

could be needs or desires you could be

selling shoelaces crude oil

nanotechnology handguns the collected

works of Tolstoy this is the classic

defense for selling capitalism

has not traditionally been interested in

the source of its profits the idea is to

make money from supplying whatever

people happen to be willing to pay for

but capitalism becomes evil when it

explodes our inability to distinguish

our needs from our desires when large

numbers of businesses sell people stuff

that they desire which in all honesty

they don't need so as a first basic

point good businesses should be defined

not simply by whether they're profitable

or not but by what they make their

profit from only businesses that satisfy

our true needs immoral

it's hard to make any business work it's

doubly hard to make it work when you're

trying not only to make money but also

to make it from needs rather than

desires bigger fortunes could be made

faster selling french fries than

stone-ground bread or running gossipy

sensationalizing newspapers than serious

broadsheets

strip clubs make more money than book

shops status driven luxury brands are

more successful than Fairtrade

cooperatives it's harder to make things

which are both appealing and good

because the enterprise need to solve two

big problems rather than just one the

laurel producer has to master both

seduction and goodness lots of people

have mastered seduction think of how

good those ice cream and doughnut

manufacturers are at eroding our

willpower and better natures and a fair

number of people have mastered goodness

think of those worthy or steer people

who work in ecological services or run

websites bringing news of appalling

misdeeds in the factories of the

developing world but very few have

mastered both arts seduction and

goodness it's not impossible it's not

the goodness makes seduction impossible

or the seduction rules out goodness it's

just that the target is smaller and far

far harder to hit but that's what we

need to aim for the great challenge of

our age is to make goodness not just its

own reward but also deeply appealing to

many to fuse goodness and seduction in

the Utopia relationship therapy would

therefore end up having some of the

charm of a gelateria

what we want above all from our work

money aside is that it be meaningful

what is meaningful work a meaningful job

is any occupation which gives you a

feeling that you are in some way through

your labour either reducing suffering or

increasing the level of fulfillment of

others that you are leaving the world a

slightly better place than you found it

the more meaningful a job the less money

matters people will be ready to enlist

in the army and die for the defence of

their nation for a very low salary or

think of the sacrifices made by

explorers environmentalists nurses or

people at the literary end of publishing

motivation comes from serving and Noble

cause good businesses are those who

reward their employees not just with

cash but also with that equally valuable

currency meaning many people at the top

of capitalism already have enough money

to feed 12 generations and yet still

they push for high returns 30 percent

per annum rather than 3 which would be

enough to keep ahead of inflation the

important thing to grasp is that though

these captains of business want to make

money deep down if they understood

themselves better they'd realize they

aren't in it for the sake of the money

what they really want is to respect

honor and love that comes in our society

for having been known to have made lots

of money this holds out an important

clue for how we should reform society by

making honor and respect more reliably

available to those capitalists who

choose to run their businesses in noble

ways satisfying needs not desires and

giving meaning to their workforces the

way status is currently distributed

directly rewards the worst kinds of

capitalism it directs honor to wealth

without asking skeptically enough how

the wealth was accumulated that's

something we're all responsible for when

we pay undue attention to the yachts and

the parties how impressed we are by

money is part of what keeps business

people who are generally narcissistic

ego driven personalities going people

become moral capitalists when they can

accept a lower return on capital in the

name of producing meaning kindness and

goodness and we become a moral Society

when we give honor and respect not just

for those who've made a lot of cash any

old how those who made a bit of cash

doing good things

typically the price of a product or a

service doesn't actually take into

account the full cost of producing it

because some resources have

inadvertently been given free to the

producers the land has been polluted and

the workers health destroyed but the

consumer isn't paying we talked a lot

about low prices we don't talk enough

about just prices a just price is the

price that is correctly factored in the

true costs of production in a good

society the just price would be the

normal price whenever a supplier

provides something below the just price

whenever there is as we wrongly call it

a bargain a shortcut is being taken

somewhere the company has to be

offloading some of the cost

they must be treating someone badly they

must be skimping on quality without

admitting it a society gets collectively

more moral we should take immense care

about the path any product took on its

way to our lives in a good business the

price of the product should reflect the

cost of supplying a thing while treating

everyone and everything even the trees

in the rivers kindly along the way

80% of business should in a perfect

world come from the top 20% of our needs

at present the overwhelming share of

business activity is directed at meeting

the lower basic needs moving about

energy food shelter a present capitalism

is mainly directed at the bottom layers

of Abraham Maslow's famous pyramid of

needs we understand we have higher needs

for love self-esteem creativity and so

on but we don't usually imagine that

commerce can help us we've got a

prejudice that paying for something

can't be connected to goodness but it

could be the fact is Commerce has only

barely scratch the list of our true

needs we need to live in beautiful

cities we need to have good advice and

psychological support we need to manage

our emotions we need to sustain strong

families across generations we need to

cultivate our minds we need to live in

societies in which it's normal to be

wise kind and self-possessed these are

vast immense undertakings and we have

collectively a huge way to go the fact

that these ambitions don't look the same

as constructing highways or building

pipelines doesn't at all mean that

they're divorced from work business or

Commerce

their goods and services which have to

be created by ingenuity organization and

effort in short I work far from worrying

about what we might do when there is no

more work we should be preparing

ourselves for almost endless labor to

reach the true goal widespread

fulfillment it's entirely understandable

that many people are disillusioned with

capitalism because business as we

currently know it is not as good as it

should be our objection is not in fact

to business as such but to business

that's bad the response is not therefore

to wish that business would go away but

to work to improve it so that one day it

comes to properly satisfiers as

consumers and as producers

you