Accounting Solver

THE ONE MUST-READ POST

by ren on December 25th, 2007

Adam Smith’s invisible hand has pretty much influenced entrepreneurial and corporate thinking. The most common interpretation of the invisible hand is: in pursuing self-interest, individuals promote the common good; a free and democratic market is best for business and the economy. The common interpretation, however, ignores or has forgotten that Adam Smith also posited that there should be strong moral norms underlying the effective and efficient workings of the invisible hand. Without strong moral norms in individuals, societies and nations, the invisible hand leads to poverty and unequal distribution of wealth, big business taking advantage of instead of taking care of, wars for economic gain, even global warming.

With strong moral norms, the more proper interpretation of the invisible hand would be: if the common good is pursued, self-interest is promoted.

The Country Grocer puts it more clearly and personally:

. . . as you scurry around with your business, remember, it’s people you’re serving and helping…to make their lives better…and our world a greater place because you’ve lived here.

Homespun –but universal– wisdom in http://www.homebiznotes.com/my-mother-the-country-grocersuccess-isnt-always-what-you-think/

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POSTED IN: Accounting for NonAccountants, Best Business Practices