How a Business Should Work and Become Excellent
Milton Friedman held that the social responsibility of business is to increase shareholder profits
Shareholders are the economic engine of the organisation and the only group to which the firm is socially responsible.
However now Business is realising that this is not the most appropriate way to describe a business
Every stakeholder is a vital component of a business
This can be understood in a ‘simply simple’ way by the following example
1) Imagine the business as a truck carrying food for people
2) The fuel that is needed is provided by the shareholders’ money
3) The truck is the company with it’s culture, processes, systems
4) The chauffeur and the helper along with other labourers are the team who runs the organisation and the truck in this example
Without the Chauffeur a tankful of fuel will take the truck nowhere
Without a good quality Engine the truck will not be able to complete the journey
And if food does not reach on time and in good condition it will annoy the people who is waiting for the truck to deliver the food
Happy customers are needed
A good vehicle is needed so that the food reaches on time and in good condition
The chauffeur and the helper and other labourers are needed to move the food and protect the food enroute
They are the team that matters a lot
And of course the truck can’t move without fuel
Thus every stakeholder is most needed to succeed in business
I rest my case
