Jun 2, 2012 - Musings    2 Comments

True Business 101

The ‘market’ is not the Stock Market.  The Stock Market is not the ‘economy’ or the best indicator of what products and services are creating the highest social value. It is a win/lose game that preys on hope and re-directs investments to non-productive processes.

The money invested in the stock market does not go to the companies. No R&D or product/service improvements are created by buying the stock of a company as none of the money invested is received by the company.  The money is traded between brokers and stock account holders.  No product or service is ever created.

Without the influence of the stock holders the leaders of a company are responsible for managing their business in way that creates profits.  Profits result from efficiently managing costs and sales of products/services that are purchased by customers.  When the products/services increase their social value, as perceived by the customers, profits rise.  Profits that are re-invested in products/services improvement that are appreciated by customers generally increase.  Guiding this process is the job of responsible leaders.

Now, more than ever, we require courageous responsible ‘real market’ leaders – in our businesses and our governments. Not stock holder controlled businesses or governments who focus primarily on increased share price and not improved products.

Leaders should be catalysts focused on innovation and energy release. Responsible leaders should be facilitating inspiring conveners stimulating changing conditions for potential progress.  Conditions change because we do.  Conditions get better because we do.

Especially our government leaders must become aware that they don’t have all of the right answers.  They must start again and ask better questions.

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2 Comments

  • Happiness keeps You Sweet, Trials keep You Strong, Sorrows keep You Human, Failures keeps You Humble, But Only God keeps You Going

    • Integrity is the Key. Spirit is the Answer.

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