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Week 12

This week, I really enjoyed the article about Microlending. I think that it really showed how one person can make a big impact. Muhammad Yunus started with just $27 out of his own pocket and has grown a microlending business to lending over $400 million. I just found the whole story about this so intriguing. It really showed how he was able to make such an impact in millions of peoples lives.

In Charles Handy's article, he talks about the importance of virtue and integrity. I think it is summed up perfectly in the following: "Markets rely on rules and laws, but those rules and laws in turn depend on truth and trust. Conceal truth or erode trust, and the game becomes so unreliable that no one will want to play. The markets will empty and share prices will collapse, as ordinary people find other places to put their money – into their houses, maybe, or under their beds." I think that we have seen this happen in our country. As the integrity and virtue of the country as a whole has started to slip slightly, the rules have changed also. This allows people to do more that may or may not be considered fair so that they can get "ahead." I think we have seen it recently with people paying to get their children in to college. My husband and I were discussing an article about it, and my husband made the comment that there are many rich people who "donate" money for a building or a program and their children get in to the school. These people were "busted" because they fraudulently paid, but is it really that much different than a donation? We talked back and forth on it, and did not really come to a conclusion, other than, well the rules say that its okay to make a donation so that's that. I think that even though its on a smaller scale, it does show what can help in capitalism though. People start to become cynical and definitely start to doubt.

According to Handy, real justification is "The purpose of a business, in other words, is not to make a profit, full stop. It is to make a profit so that the business can do something more or better. That “something” becomes the real justification for the business." To me this means that real justification is the reason a business is in business. Realizing what this reason is can help show what the businesses true intentions are.

One of his ideas that I agree with is more corporate democracy and better corporate behavior would help improve the current business culture. He kind of proved his point with his examples of England and their paternity leave and France with its 35-hour work week. We have even seen this in the example of Google. Google is changing the thought process behind workplace environment. We just watched a video about Google and that they allow their employees 10% of their time to work on whatever they want. By doing this, they found that their employees were actually more productive and were producing more products.

Another idea that I agree with is to associate with a cause to give purpose to our lives. I think that there are many people who do not have a cause that they are a part of (religion, charitable organization, etc.) and their only cause is their business. I think as we are more service oriented it helps us stay focused on what really matters.





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